1) The journal entry to record the net income reported by S Co. in the books of P Co. will include: *

a) Credit Equity in Subsidiary Income $400,000

b) Credit Equity in Subsidiary Income $320,000

c) Credit Investment in S Co. $400,000

d) Credit Investment in S Co. $320,000

2)The eliminating entries required to prepare consolidated financial statements on Dec 31, 2019 will include: *

a)Credit Noncontrolling Interest in Equity $300,000

b)Credit Noncontrolling Interest in Equity $200,000

c)Credit Investment in S Co $1,500,000

d)Credit Investment in S Co $1,600,000

3)The journal entry to record the investment in S Co. in the books of P Co. will include: *

a)Debit Investment in S Co. $1,200,000

b)Debit Cash $1,200,000

c)Credit Investment in S Co. $1,200,000

d)Credit Common Stock $1,200,000

4) The balance of Investment in S Co. in P Co. trial balance on Dec 31, 2019 will be: *

a) $1,362,000

b) $1,328,000

c) $1,200,000

d) $1,396,000

5)The journal entry to record the dividend distributed by S Co. in the books of P Co. will include: *

a)Debit Cash $ 192,000

b)Debit Cash $ 240,000

c)Debit Investment in S Co. $192,000

d)Debit Investment in S Co. $240,000

6) The eliminating entries required to prepare consolidated financial statements on Dec 31, 2019 will include: *

a) Credit Other Contributed Capital $180,000

b) Credit Retained Earnings $640,000

c) Credit Common Stock $440,000

d) Credit Dividend Declared $192,000

On January 1, 2019, P Company purchased 80% of the common stock of S Company for $1,200,000. During 2019, S Co. distributed a dividend in the amount of $240,000 and at year- end reported a $400,000 net income. Any difference between implied and book value relates to subsidiary goodwill. P Company uses the equity method to record its investment and no impairment of goodwill needed for first year. At acquisition date, S Co. stockholders' equity consisted of the following: Common stock Other contributed capital Retained earnings $440,000 180,000 640,000 Use the above information to answer the following