QUESTION 3 Company P purchased 70% stock in Company Son Jan 1, 20x1 for $200,000. Company S reported the following information for the year 2013 S Income before Extraordinary Income $90,000 Extraordinary Income 20.000 Net Income 110,000 Also, Company S paid a dividend of $40,000 during the year 20X1. Under the equity method, in the books of P, the extraordinary income account will be credited with $14,000 O 0, because don't record investor's share in extraordinary income in the equity method. O $77,000 $28,000 QUESTION 4 P Company purchased 20% of the outstanding stock of S Company on Jan 1, 2018 for $200,000. In 2018, Searned a net income of $100,000 and paid dividends of $30,000 The fair market value of Ss Investment on Dec 31, 2018 was $203,000. In 2018, under the fair value method, the increase in the total income including any unrealized gains of losses will bey of P due to the investment in S will be $9,000 $6,000 $23,000 $17,000