P Co. purchases 100 percent of S Company on January 1, 20X2, when P's retained earnings balance is $320,000 and S's RE balance is $120,000. During 20X2, S reports $20,000 of net income and declares $8,000 of dividends. P reports $125,000 of separate operating earnings plus $20,000 of equity-method income from its 100 percent interest in S:P declares dividends of $35,000 What is S's retained earnings balance on December 31, 20x2 in its individual RE statement? $120,000 5106,000 $132.000 $140,000 QUESTION 3 Hint: This problem has some liquidating dividendu. S started a new business on Jan 1, 2018. P purchased 40% mock of Son Jan 1 2018 for $300,000. The net income and dividends paid by S for 2018 and 2019 wo as follows: Year 2018 2019 Net Income of 60,000 40,000 Dividendo paid by s 40,000 70,000 Using the cost method, the balance in the investment in Account in the books of P on Dec 31 2018 will be $200.000 $230,000 $296,000 $197,000