P Inc. acquires 60% of S Corporation for P414,000 cash on January 1, 2017. The remaining 40% of S Corporation shares traded near a total value of P276,000 both before and after the acquisition date. On January 1, 2017, S Corporation had the following assets and liabilities: Book Value Fair Value Current Assets 150,000 150,000 Land 200,000 200,000 Buildings (net) 6 year life 300,000 360,000 Equipment (net) 4 year life 300,000 280,000 Patent (10 year life) -0- 100,000 Liabilities (400,000) (400,000 Net 550,000 690,000 Common Stock 480,000 Retained Earnings 70,000 The companies' financial statements for the year end December 31, 2020 under equity method follows: P Inc. S Corp. Revenues 600,000 300,000 Operating expenses 410,000 210,000 Investment Income 45,000 0 Net Income 235,000 90,000 Retained Earnings 1/1/20 811,000 300,000 Net Income 235,000 90,000 Dividends paid 92,000 70,000 Retained earnings 954,000 320,000