On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $287,900 cash. The following balance sheet shows Sulfurst Inc.s book values immediately prior to acquisition, as well as the appraised values of its assets and liabilities by Plutoniums experts.

		Sulfurst Inc.s Book Values		Sulfurst Inc.s Market Values
Current assets		$87,800		$87,800
Property, plant & equipment:
Land		81,500		102,400
Building & machinery (net)		169,200		169,200
Total assets		$338,500
Total liabilities		$95,000		$95,000
Common stock, $5 par value		93,800
Additional paid-in-capital		20,500
Retained earnings		129,200
Total liabilities and equities		$338,500

Prepare journal entries under each of the following methods to record the information above on the books of Plutonium Corporation for the years 2017 and 2018, assuming that all depreciable assets have a remaining life of 20 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter O for the amounts.) (1) Plutonium uses the cost method to account for its investment in Sulfurst. Date Account Titles and Explanation Debit Credit 2017 Retained Earnings - Subsidiary Company 2018 Retained Earnings - Parent Company