Company P purchased 40% stock in Company Son Jan 1, 20x1 for $200,000. 20X1 is also the first year of operations of Company S. The net income of Company S and the dividend paid by it in the year 20X1 is $80,000 and $100,000 respectively. Under the equity method, in the books of the dividend revenue account will be credited with $40,000 $8,000 $32,000 SO QUESTION 27 The book value of owners' equity of Company S was $100,000 on Jan 1, 20X8. On this date Company Pacquired 75% shares of Companys at book value by insuing bonds with a par value and fair value of $75,000. In recording the journal entry of acquisition, Bonds Payable will be credited with $75,000 Bond Discount will be debited with $15,000 Additional Paid in Capital will be credited with $15,000 Bonds Premium will be credited with $15,000