Menu CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 8 Not complete Marked out of 25.00 P Computing the amount of equity income and preparing t1 consolidation journal entries Equity method ume that a parent company sells inventory to its wholly owned subsidiary fthe consolidated group. You have compiled the foll subsidiary, ultimatel outsid the years ending 2 and 2016 Subsidiary Receivable Assume that inventory not remaining at the end of the year was sold outside of the consolidated group. The subsidiary paid $80.000 in dividends during 2016. a. How much Income (loss) from subsidiary should the parent report in its pre-consolidation income statement the year ending 2016 assuming that It uses the equity method of accounting for its Equity Investment? b. Prepare the required consolidation journal entries for 2016. Description Debit Credit O Ask me anything