10) When the equity method is used to necount for investments in common stock, which of the following affeets the investor's reported income Exeess amortization expense Cash dividends related to the purchase from investee A) B) C) D) Yes No No Yes Yes Yes No No 11) Empire Company, acquired 75% of the voting stock of Friend Corp. on January 1, 2013, During the year, Empire made sales of inventory to Friend. The inventory cost Empire $260,000 and was sold to Friend for $390,000, Friend still had $60,000 of the goods in its inventory at the end of the year. The amount of unrealized intra-entity profit that should be eliminated and deferred in the consolidation process at the end of 2013 is: A) $20,000 B) $32,500 C) $30,000 D) $110,000 12) Where does the non-controlling interest get reported in the financial statements? A) Assets B) Long-term liabilities C) Revenues D) Stockholder's equity E) Expenses