Ice Corporation owns 30% of Idea Company and applies the equity method. In 2XX0, Ice Corp. sellsmerchandise costing $288,000 to Idea for $360,000. Idea's ending inventory includes $60,000 purchasedfrom Ice.Which of the following is the correct equity method entry to record the realization of the gross profit in2XX1?Select one:O a.OEquity InvestmentCost of Goods Soldb.Equity IncomeEquity InvestmentC.d.Equity IncomeDebit Credit60,000Equity Investment 3,600Equity IncomeEquity Investment60,000Debit Credit3,600Debit Credit3,6003,600Debit Credit60,00060,000

Gross profit is a measure of a company's financial health and performance. It represents the amount…

Answered: Ice Corporation owns 30% of Idea…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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