Company P purchased 70% stock in Company Son Jan 1, 20x1 for $200,000. For the year 20X1, Company S reported a 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 $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 $25,000 The extraordinary loss will be debited with $25,000 QUESTION 7 Whenever the investee reports any extraordinary gains, the investor also reports his share in those gains in his books True False