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4. Penston Company owns 36 percent (30,000 shares) of Scranton, Inc., which it purchased several years ago for $182,000. Since the date of acquisition, the equity method has been properly applied, and the book value of the investment account as of January 1, 2021, is 270,000. Excess patent cost amortization of $18,000 is still being recognized each year. During 2021, Scranton reports net income of $264,000, $364,000 in operating income earned evenly throughout the year, and a $100,000 extraordinary loss incurred on September 1. No dividends were paid during the year. Penston sold 7,500 shares of Scranton on November 1, 2021, for 82,000 in cash. However, Penston retains the ability to significantly influence the investee. During the last quarter of 2020, Penston sold $60,000 in inventory (which it had originally purchased for only $40,000) to Scranton. At the end of that fiscal year, Scranton's inventory retained $48,000 (at sales price) of this merchandise, which was subsequently sold in May 31, 2021 On Penston's financial statements for the year ended December 31, 2021, determine the income effects that would be reported from its ownership in Scranton? c) d) e) Income effects for year ending December 21, 2021. Extraordinary Loss - Scranton, Inc. Gain or Loss on sale of investment in Scranton, Inc

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