P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when Shad Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2014, S had income of $40,000, declared dividends of $15,000, and paid $10,000 On December 31, 2014, the consolidated financial statements on 1/1/2014 will Show investment in s, inc amount? Select one: a. 140,000 b. 165,000 c. 150,000 0.0 A parent company's journal entries to record a business combination with a subsidiary do not include debits and credits to recognize the assets and liabilities of the subsidiary Select one: True O False lon On June 1, 2014, P Company acquired 100% of the stock of S Inc. On this date, p had Retained Earnings of $100,000 and Shad Retained Earnings of $50,000. On December 31, 2014, P had Retained Earnings of $120,000 and Shad Retained Earnings of $60,000. The amount of Retained Earnings that appeared in the December 31, 2014 consolidated balance sheet was Select one: a. 130,000 b. 170,000 c. 120,000 d. 180,000 The acquisitions method for consolidation requires that all assets and liabilities of the subsidiary are reported using its fair values at the combination date. Select one: True O False