Multiple Choice $12-$ KThe following data are submitted relative to Pentagon Holdings Corp. and its subsidiary, Slogan Generators Co$.,$ whose stocks it acquired on January $1,2014.$PentagonHoldings CoSloganGenerators CoPar value of stock outstandingP$500,000$P $75,000$Portion of stock owned by Pentagon$90\%$Retained Earnings, January $1,2008180,00045,000$Cost to Pentagon of stock acquiredNet income from own operations$110,000$during $200845,0005,000$Dividends paid during $200830,0004,500$The Pentagon Holdings Corp. has adopted the equity method of accounting for investment. Any excess is attributable to an asset with a $10$ years life$\mathrm{.}1.$ On January $1,2014,$ the book value of the Slogan shares acquired by Pentagon amounted to a$.$a$.$ P$67,500$b$.$ P$99,000$c$.$ P $108,000$d$.$ P$110,2502.$ In preparing a Consolidated Statement of Financial Position for Pentagon, the increase in identifiable net assets to fair value at December $31,2014$ isa. P$2,000$b$.$ P$2,700$c$.$ P$3,000$d$.$ P$4,5003.$ During the year $2014,$ Pentagon should have received its share in the distributed earnings of Slogan, amounting to a$.$a$.$ P$4,000$b$.$ P$4,015$c$.$ P$4,050$d$.$ P$4,5004.$ The Consolidated Retained Earnings of Pentagon and Slogan as of December $32014$ would be a$.$ P$195,000$b$.$ P$199,230$c$.$ P $199,350$d$.$ P$199,500$