Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. 
Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends. 
Compute the equity in earnings of Anderson reported on Philbin's books for 2021.
Definitions:
Perfectly Inelastic
A situation in which demand or supply does not respond at all to changes in price levels, illustrated by a vertical demand or supply curve.
Demand Curve
A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.
Income Effect
That part of an increase (decrease) in amount consumed that is the result of the consumer’s real income being expanded (contracted) by a reduction (rise) in the price of a good.
Candy Bars
Candy bars are confectionery items commonly consisting of a chocolate coating or shell filled with ingredients like nuts, caramel, or nougat.
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