. P purchased 100% of S Company stock on Jan 1, 2018 and paid $70,000 above the book value of the net assets of S. $50,000 differential was related to the equipment that had a remaining useful life of 10 years and the $20,000 of the differential was related to inventory. S Company uses the FIFO method to record inventory. During the year 2018, S reported a net income of $80,000 and paid dividend of $10,000. What amount of income will be reported by P for its investment in S for the year 2018? Assume P uses the equity method.

		$45,000
		$65,000
		$ 55,000
		$70,000