28 P Co acquired an 80% interest in S Co on 1/1/2019, when the book values of S assets and liabilities were equal to their fair values.The cost of the 80% interest was equal to 80% of the book value of S net assets. During 2019, P sold merchandise that cost $86,000 to S for $70,000. On December 31, 2014, one-fourths of the merchandise acquired from P remained in S inventory. Separate incomes (investment income not included) of the two companies are as follows:

P S

Sales Revenue 180,000 160,000

Cost of Goods Sold 120,000 90,000

Operating Expenses 17,000 21,000

Separate incomes 43,000 49,000

What is P income from Investment in S for 2019?

Select one: a. $39,200 b. $35,200 c. $43,200 d. $42,400