Green Inc. owns 30% of Yalen Co. and uses the equity method for its investment. During the current year, Green bought inventory costing $180,000 and then sold it to Yalen for $240,000. This was Yalen's first and only inventory purchase.  At year-end, Yalen had ending inventory of $24,000. Yalen net income of $100,000 for the year. Assume you have all the information you need to answer this. 

What will Green report as "equity in income of investee" for the current year?

Answer rating: 100% (QA)

SOLUTION Under the equity method an investor records its share of the investees income or loss as pa... View the full answer