Company P purchased 70% stock in Company Son Jan 1, 20x1 for $170,000. For the year 20X1, Company S reported a net income of $100,006 and paid dividends of $40,000. At year-end, investment account in the books of Company P had a fair market value of $175,000 Under the fair value method The unrealized loss will be credited with $25,000 The unrealized loss will be debited with $25,000. The unrealized gain will be credited with $5,000. The extraordinary loss will be debited with $25,000. QUESTION 10 P purchases 100 percent of Company on January 1, 20x2, when P's retained earnings balance is $210,000 and S's RE balance is $120,000 During 20x2, S reports $20,000 of net income and declares $8,000 of dividends. Proports $125,000 of separate operating earnings plus $20,000 of equity-method income from its 100 percent interest in S; P declares dividends of $35,000 What is P's retained earnings balance on December 31, 20x2 in its individual RE statornent? $305,000 $320,000 $410,000 5465,000