points Save Answe On 1/1/2014, P Company acquires 100% of the voting stock of S, Inc. for $18,000,000 in cash Some of S assets had fair values that differed from their book values, as follows: BOOK VALUE FAIR VALUE Property & Equipment, net (20 remaining life, SL) $11,000,000 $3,000,000 Identifiable intangible assets (5 years, SL) $ 000 $10,000,000 S total stockholders' equity at 1/1/2014 was $5,000,000. Now we are at 12/31/2017, four years later. S's retained eamings, January 1, 2017 reflect the accumulation of net income less dividends. S does not report any AOCI. Cumulative goodwill impairment to the beginning of 2017 is $1,000,000. Additional goodwill impairment of $500,000 was incurred in 2017 Puses the complete equity method to record its investment in S. The trial balance at 12/31/2017 for S appears below. S.Inc Debit (Credit) Current assets $ 3,500,000 Property & equipment 28,000,000 Current liabilities (1,500,000) Noncurrent liabilities (9,000,000) Common stock and additional paid-in capital (2,000,000) Retained earnings, 1/1/17 (16,500,000) Sales revenues (14,500,000) COGS 8,500,000 Operating expenses 3,500,000 On the 2017 consolidation work paper, eliminating entry (R) reduces Investment in S by O a. $8,400,000 O b. $5,100,000 O c. $7,200,000 O d. $13,000,000