Company P purchased 40% stock in Company Son Jan 1, 20x1 for $200,000. The net income of Company S and the dividend paid by it in the year 20X1 is $80,000 and $30,000 respectively. Under the cost method, the increase in the net of P related to its investment in Company S for the year 20X1 will be $32,000 $20,000 $12,000 $16,000 QUESTION 18 Company P purchased 40% stock in Company Son Jan 1, 20x1 for $200,000. The net income of Company S and the dividend paid by it in the year 20X1 is $80,000 and $30,000 respectively. Under the equity method, the increase in the net income of P related to its investment in Company S for the year 20X1 will be $16,000 $20,000 $32,000 $12,000