Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1,...

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Belden, Inc. acquires 30 percent of the outstanding votingshares of Sheffield, Inc. on January 1, 2017, for $306,000, whichgives Belden the ability to significantly influence Sheffield.Sheffield has a net book value of $784,000 at January 1, 2017.Sheffield's asset and liability accounts showed carrying amountsconsidered equal to fair values except for a copyright whose valueaccounted for Belden's excess cost over book value in its 30percent purchase. The copyright had a remaining life of 16 years atJanuary 1, 2017. No goodwill resulted from Belden's share purchase.Sheffield reported net income of $182,000 in 2017 and $244,000 ofnet income during 2018. Dividends of $64,000 and $90,000 aredeclared and paid in 2017 and 2018, respectively. Belden uses theequity method. On its 2018 comparative income statements, how muchincome would Belden report for 2017 and 2018 in connection with thecompany's investment in Sheffield? If Belden sells its entireinvestment in Sheffield on January 1, 2019, for $412,000 cash, whatis the impact on Belden's income? Assume that Belden sellsinventory to Sheffield during 2017 and 2018 as follows. What amountof equity income should Belden recognize for the year 2018? YearCost to Belden Price to Sheffield Year-End Balance (at TransferPrice) 2017 $36,000 $60,000 $20,000 (sold in following year) 201834,160 61,000 38,000 (sold in following year)

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