11. The 80%-owned subsidiary of a parent company reported a net income of $80,000 for the year ended May 31, 2006. The parent company’s appropriate journal entry under the equity method of accounting is (explanation omitted):

a. Investment in Subsidiary Company Common Stock 80,000 Investment Income 80,000

b. Intercompany Investment Income 80,000 Investment in Subsidiary Company Common Stock 80,000

c. Investment in Subsidiary Company Common Stock 64,000 Intercompany Investment Income 64,000

d. Intercompany Investment Income 64,000 Investment in Subsidiary Company Common Stock 64,000