P Company acquired all of the voting stock of S Company on 1/2/15 and used the equitymethod to record this investment.On the acquisition date, P's equipment had a book valueof $340,000 and a fair value of $420,000 (8-year remaining life), while S's equipment had abook value of $215,000 and a fair value of $242,000 (9-year remaining life).On 12/31/18,P's equipment account had a book value of $320,000 and a fair value of $390,000, while S'sequipment account had a book value of $180,000 and a fair value of $230,000. At whatamount should Equipment (net) be reported in the consolidated balance sheet of 12/31/18?

$515,000

(None of these)

$485,000

$488,000

$518,000

(Continued from ) If the parent had used the partial equity method instead ofthe equity method to record the investment in S, would the reported amount of Equipment(net) in the consolidated balance sheet be higher, lower, or remain the same?

Group of answer choices

The same

Higher

Lower