Jubilee, Inc., owns 35 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $74,100 and then sells it to JPW for $114,000, At the end of the year, JPW still holds only $28,000 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment using the equity method?

Multiple Choice

$7,030 

$9,430 

$14,230

$3,430.

Answer rating: 100% (QA)

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