Q8- Company P purchased 70% stock in Company S on Jan 1,20X1 for $170,000. For the year 20X1. Company S reported a net income of $100,000 and paid dividends of $40,000. At year-end, investment account in the books of Company P had a fair market value of $175.000. Under the equity method: a- The unrealized gain will not be recognized. b- The unrealized loss will be debited wifh $25600. (C) The unrealized gain will be credited with $8,000. d- The extraordinary loss will be debited with $25,000