$7(3\mathrm{.}0$ points$)$

Investor owns $30\%$ of Investee and applies the equity method. In $2020,$ Investor sells merchandise costing $$240,000$ to Investee for $$300,000.$ Investee's ending inventory includes $$50,000$ purchased from Investor.

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Which of the following is the correct equity method entry to defer the unrealized gross profit?

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a$.$ DR Equity Income and CR Equity Investment for $3,000$

b$.$ DR Equity Investment and CR Equity Income for $3,000$

c$.$ DR Cost of Goods Sold and CR Equity Income for $50,000$

d$.$ DR Equity Investment and CR Equity Income for $50,000$