Question: Perez, Incorporated, applies the equity method for its 2 5 percent investment in Senior, Incorporated. During 2 0 2 4 , Perez sold goods with

Perez, Incorporated, applies the equity method for its 25 percent investment in Senior, Incorporated. During 2024, Perez sold goods with a 40 percent gross profit to Senior, which sold all of these goods in 2024. How should Perez report the effect of the intra-entity sale on its 2024 income statement?

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