Steven Inc. sold $219000 in inventory to Thomas Co. during 20X0 for $300000. Thomas resold $100000 of this merchandise in 20X0 with the remainder to be disposed of during 20X1.

Assume Steven owns 28% of Thomas and applies the equity method.

1. Determine Stevens share of the unrealized gain at the end of 20X0.

2. Prepare the journal entry Steven should record at the end of 20X0 to defer yhe unrealized intra-entry inventory profit.