P Corporation acquired 70 percent ownership of S Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of S. On January 1, 20X8, Portfolio sold 1,000 shares of S Company for $20,000 to A Corporation and recorded a $5,000 gain. Trial balances for the companies on December 31, 20X8, contain the following data:

P Corp. S Company Debit Credit Debit Credit Cash $ 70,000 $ 20,000 Accounts Receivable 60,000 40,000 Inventory 80,000 60,000 Buildings and Equipment 400,000 200,000 Investment in S 114,000 Cost of Goods Sold 180,000 90,000 Depreciation Expense 40,000 20,000 Other Expenses 17,000 30,000 Dividends Declared 25,000 20,000 Accumulated Depreciation S 80,000 $ 60,000 Accounts Payable 40,000 30,000 Bonds Payable 100,000 40,000 Common Stock ($5 par) 150,000 50,000 Additional Paid-In Capital 75,000 10,000 Retained Earnings 200,000 90,000 Sales 300,000 200,000 Gain on Sale of S Company Stock 5,000 Income from S Company 36,000 $ 986,000 $ 986,000 $ 480,000 $ 480,000