ion 1 P Company received a cash dividend from a common stock investment. Should P report an decrease in the investment account if it uses the cost method or equity method of accounting? ut red d out of og question Select one: a. cost no, equity yes b. cost & equity no C. cost yes ,equity no d. cost & equity yes on 2 The elimination entry under the perpetual inventory system for intercompany sales is a debit to sales and a credit to purchases ed Select one: out of True O False question on 3 ad P Corporation acquired an 80% interest in s Corporation on January 1, 2014, when the book values of S assets and liabilities were equal to their fair values. The cost of the 80% interest was equal to 80% of the book value of S net assets. During 2014, P sold merchandise that cost $70,000 to S for $86,000. On December 31, 2014, three-fourths of the merchandise acquired from P remained in S inventory. Separate incomes investment income not included) of the two companies are as follows: out of question P S Sales Revenue $180,000 $160,000 Cost of Goods Sold 120,000 90,000 Operating Expenses 17,000 21,000 Separate incomes $ 43,000 $ 49,000 the year ended December 31, 2014 ,the realized income from intercompany sales Select one: o a. $12,000 profit b. $ 4,000 profit c. $ 12,000 loss d. $ 4,000 loss