Company P purchased 100% of the outstanding common stock of Company S on 1/1/19 for $700,000 in cash and stock. Company P accounts for the income of Company S using the Simple Equity Method, and during the year Company S reported Net Income of $100,000 and declared and paid dividends of $70,000. Assuming no other transaction between the two companies, the balance in "Investment in Company S" on the books of Company P on 12/31/19 will be:

Question 2 options:

a)

$0

b)

$730,000

c)

$600,000

d)

$630,000