Question 5 - worth 10 points if answered correctly - partial credit is available. Big Inc, owns 30% of the outstanding voting common stock of Little Co. and has the ability to significantly influence the investee's operations and decision-making. On January 1, 2019, the balance in the Investment in Little Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2019, Little earned income of $108,000 and paid cash dividends of $36,000. Previously in 2018, Little had sold inventory costing $28,800 to Big for $48,000. All but 25% of this merchandise was consumed by Big during 2018. The remainder was used during the first few weeks of 2019. Additional sales were made to Big in 2019; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2019, A. What amount of equity income would Big have recognized in 2019 from its ownership interest in Little? B. What was the balance in the Investment in Little Co. account at the end of 2019