Required information Portland Inc. (Portland) owns 80\% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The 2023 income statements of both companies are shown below. On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. The equipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%. nich of the following is the correct amount of gross profit appearing on Portland's 2023 consolidated income statement? Assuming Portland uses the equity method to account for the investment in Seattle, which of the following is the correct journal entry to record the realized after-tax profit from the sale of the equipment in 2023 ? Multiple Choice