the Coca-Cola company owns 28 percent of the voting stock of Coca-Cola Femsa, acquired at book value. assume that Coca-cola Femsa reports income of $5million for 2016. Coca- Cola Femsa regularly sells canned beverages to Coca-Cola at a markup of 35 percent on cost. during 2016 Coca-Cola Femsa's sales to coca-cola totaled $25 million. coca-cola's january 1,2016 inventories include $1,350,000 purchased from Coca-Cola Femsa . Coca-Cola's december 1,2016 inventories include $1,215,000 purchased from Coca-Cola Femsa

Required

Prepare the 2016 journal entry on Coca-Cola's books to recognize its income from Coca-Cola Femsa under the equity method.