QUESTION 2 On January 1, 2019, Apple Inc. acquired 30% of the stock of Box for $25,000,000. The book value of Box's stock at the time of purchase was $ 40.000.000. Book values approximated fair values except for a building that was overvalued by $10,000,000 (10 year , equipment that was undervalued by $4,000,000 (2 year and previously unrecorded intangibles of $20,000,000 indefinite life. It is now December 31, 2021 Apple sells merchandise to Box at a markup of 20% on cost. Box sells merchandise to Apple at a markup of 25% on cost. Below are the inventory balances : Date Inventory held by Apple Inventory held by Box December 31, 2020 1,000,000 3,000,000 December 31, 2021 1,025,000 3,120,000 Box reports net income of $ 1,300,000 in 2019; $1,500,000 in 2020 and $ 1,600,000 in 2021, Bax pays no dividends during this period, Required: a Calculate equity in net income of Box, reported on Apple's 2021 income statement b. Calculate the balance in Investment in Box as of December 31, 2021 Attach File Browse My Computer Browse Content Collection QUESTION 2 On January 1, 2019, Apple Inc. acquired 30% of the stock of Box for $25,000,000. The book value of Box's stock at the time of purchase was $ 40.000.000. Book values approximated fair values except for a building that was overvalued by $10,000,000 (10 year , equipment that was undervalued by $4,000,000 (2 year and previously unrecorded intangibles of $20,000,000 indefinite life. It is now December 31, 2021 Apple sells merchandise to Box at a markup of 20% on cost. Box sells merchandise to Apple at a markup of 25% on cost. Below are the inventory balances : Date Inventory held by Apple Inventory held by Box December 31, 2020 1,000,000 3,000,000 December 31, 2021 1,025,000 3,120,000 Box reports net income of $ 1,300,000 in 2019; $1,500,000 in 2020 and $ 1,600,000 in 2021, Bax pays no dividends during this period, Required: a Calculate equity in net income of Box, reported on Apple's 2021 income statement b. Calculate the balance in Investment in Box as of December 31, 2021 Attach File Browse My Computer Browse Content Collection