BuyCo holds 25 percent of the outstanding shares of Marqueen and appropriately a

BuyCo holds 25 percent of the outstanding shares of Marqueen and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10000 per year. For 2012 Marqueen reported earnings of $100000 and pays cash dividends of $30000. During that year Marqueen acquired inventory for $50000 which it then sold to BuyCo for $80000. At the end of 2012 BuyCo continued to hold merchandise with a transfer price of $32000.a.What Equity in Investee Income should BuyCo report for 2012?Equity in Investee Income$b.How will the intra-entity transfer affect BuyCos reporting in 2013? Equity accrual for 2013 will (Click to select)increasedecreaseby $ .c.If BuyCo had sold the inventory to Marqueen whether the answers to (a) and (b) would change?