If Elstone Company acquired a 30% Interest in Alley Company on December 31, 2004 for P135,000 and during 2005 Alley Company had net Income of P50,000 and pald a cash dividend of P20,000, applying the equity method would give a debit balance in the Investment In Alley Company Stock account at the end of 2005 of * The summarized balance sheets of Elstone Company and Alley Company as of December 31, 2004 are as follows: Elstone Company Balance Sheet December 31, 2004 Assets P800,000 Liabilities Capital stock Retained camings Total equities Alley Company Balance Sheet December 31, 2004 Assets P100,000 400,000 300.000 P800,000 P600,000 Liabilities Capital stock Retained earnings Total equities P150.000 370.000 80.000 P600,000 114000