ction Reference: 4.2 ) P Company purchased 90% of the outstanding common stock of S Company on January 1 13.S Company's stockholders' equity at various dates was: ommon stock etained earnings otal 1/1/17 12/31/17 $400,000 $400,000 $400,000 120,000 380,000 460,000 $520,000 $780,000 $860,000 he workpaper entry to establish reciprocity under the cost method in the preparation of a onsolidated statements workpaper on December 31, 2017 should include a credit to P Compar retained earnings of a) $80,000. b) $234,000. c) $260,000. d) $306,000. Answer: b ction Reference: 4.2 ) P Company purchased 90% of the outstanding common stock of S Company on January 1 13.S Company's stockholders' equity at various dates was: ommon stock etained earnings otal 1/1/17 12/31/17 $400,000 $400,000 $400,000 120,000 380,000 460,000 $520,000 $780,000 $860,000 he workpaper entry to establish reciprocity under the cost method in the preparation of a onsolidated statements workpaper on December 31, 2017 should include a credit to P Compar retained earnings of a) $80,000. b) $234,000. c) $260,000. d) $306,000. Answer: b