When an equity method investee sells inventory to its investor at a gross profit and a portion of the inventory remains unsold to outside parties at year end, the investor's Equity in Investee Income account Multiple choice question.

is decreased for 100% of the gross profit from the original intra-entity sale. 

remains unaffected. 

is increased for the investor's ownership percentage of the gross profit on intra-entity inventories that have not been resold to outside entities. 

is decreased for the investor's ownership percentage of the gross profit on intra-entity inventories that have not been resold to outside entities

Answer rating: 100% (QA)

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