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REFERENCE: Ref.01_02 Starge Inc.owns 30% of the Outstanding Voting Common Stock of Stock

question 23

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REFERENCE: Ref.01_02
Starge Inc.owns 30% of the outstanding voting common stock of Ticker Co.and has the ability to significantly influence the investee's operations and decision making.On January 1,2008,the balance in the Investment in Ticker Co.account was $402,000.Amortization associated with this acquisition is $8,000 per year.During 2008,Ticker earned an income of $108,000 and paid cash dividends of $36,000.Previously in 2007,Ticker had sold inventory costing $28,800 to Starge for $48,000.All but 25% of this merchandise was consumed by Starge during 2007.The remainder was used during the first few weeks of 2008.Additional sales were made to Starge in 2008;inventory costing $33,600 was transferred at a price of $60,000.Of this total,40% was not consumed until 2009.
-What amount of equity income would Starge have recognized in 2008 from its ownership interest in Ticker?

Definitions:

Perceptual Set

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A period characterized by persistent feelings of sadness, loss of interest, and other emotional and physical symptoms, indicating depression.

Artificial Laughter

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A psychological framework that influences how a person perceives and interprets sensory information based on expectations, biases, and experiences.