Investor Limited owns 35% of Machines Limited and has significant influence. The investment was made five years

Question:

Investor Limited owns 35% of Machines Limited and has significant influence. The investment was made five years ago, when Machine’s fair values equaled book values; $ 40,000 of was inherent in the purchase price. Goodwill is not impaired. In the current fiscal year, Machines reported $ 225,000 in income. This includes a $ 50,000 profit on inventory sold to Investor Limited, which Investor has not yet resold. How much investment revenue will Investor report using the equity method? Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...