On 1/1/2014, P Company acquires 100% of the voting stock of S, Inc. for $18,000,000 in cash.Some of S assets had fair values that differed from their book values, as follows:

BOOKVALUEFAIR VALUE

Property & Equipment, net (20 remaining life, SL)$11,000,000$3,000,000

Identifiable intangible assets (5 years,SL)$000$10,000,000

S total stockholders' equity at 1/1/2014 was $5,000,000.Now we are at 12/31/2017, four years later.S's retained earnings, January 1, 2017 reflect the accumulation of net income less dividends.S does not report any AOCI.Cumulative goodwill impairment to the beginning of 2017 is $1,000,000.Additional goodwill impairment of $500,000 was incurred in 2017. P uses the complete equity method to record its investment in S.The trial balance at 12/31/2017 for S appears below.

S, Inc.Debit (Credit)Current assets$3,500,000Property & equipment28,000,000Current liabilities(1,500,000)Noncurrentliabilities(9,000,000)Common stock and additional paid-in capital(2,000,000)Retained earnings,1/1/17(16,500,000)Sales revenues(14,500,000)COGS8,500,000Operating expenses3,500,000

On P's December 31, 2017 trial balance, what is the balance of its investment in S account, using the complete equity method?

a.$31,600,000

b.$26,100,000

c.$26,600,000

d.$25,700,000