27. Computing the amount of equity income and preparing [I] consolidation journal entriesAssume that a parent company sells inventory to its wholly owned subsidiary. The subsidiary, ulti-mately, sells the inventory to customers outside of the consolidated group. You have compiled the fol-lowing data for the years ending 2012 and 2013:Subsidiary Net IncomeInventory SalesGross Profit on Unsold InventoriesReceivable (Payable)2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$300,000$50,000$18,000$20,0002012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$200,000$40,000$13,500$15,000Assum e that inventory not remaining at the end of the year was sold outside of the consolidated group. a. How much Equity Income should the parent report in its pre-consolidation income statement the year ending 2013 assuming that it uses the equity method of accounting for its Equity Investment