Company P purchased 70% stock in Company Son Jan 1, 20x1 for $200,000. For the year 20X1. Company S reported the net income of $100,000 and paid dividends of $40,000. At year end, investment account in the books of Company P had a fair market value of $225,000. Under the equity method, the balance in the investment account in the books of P will be reported at $270,000 $242,000 $253,000 $225,000 QUESTION 17 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 Prelated to its investment in Company S for the year 20X1 will be $32,000 $20,000 $12,000 $16,000