m #3 (15 points) On January 2, 2017 Cornwall Corporation acquired 35% of the ve in cash, when Kingston's total book valu intangibles. he voting stock of Kingston Company for $4,000,000 Eston's total book value was $20,00000. The basis difference was attributed to indefinite life During 2017 Kingston reported total net income of $600.000 and paid and paid total dividends of $200,000. Kingston also 13,000 in unrealized losses on AFS securities Kingston sold $5,000,000 in merchandise to Cornwall at a markup of 20% on cost: $312,000 remains in Cornwall's ending inventory Cornwall uses the equity method to report its investment in Kingston. Required a. Compute Cornwall's equity in net income and equity in other comprehensive income of Kingston for 2017, reported on Cornwall's statement of comprehensive income. Make the journal entry or entries necessary to report the investment in Kingston on Cornwall's books for 2017