Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $110,400 and then sells it to Watkins for $138,000. At the end of the year, Watkins still holds only $25,300 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method? Multiple Choice $1,518. 0 $8,418. 0 $6,318. 0 $11,118