Q8- Company P purchased 70% stock in Company S on Jan 1, 20X1 for $170.000. For the year 20X I, 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 fair value method:

a- The unrealized loss will be credited with $25,000

b- The unrealized loss will be debited with $25,000.

c- The unrealized gain will be credited with $5,000.

d- The extraordinary loss will be debited with $25,000.

With calculations please