QUESTION 6 P Company purchased 20% of the outstanding stock of Company on Jan 1, 2018 for $200,000. In 2018, Searned a net income of $100.000 and paid dividends of $30,000 in 2018, under the equity method, the increase in net income of P due to the investment in S will be $20,000 $6,000 $14,000 $40,000 QUESTION 7 P Company purchased 20% of the outstanding stock of 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 S's Investment on Dec 31, 2018 was $203.000. In 2013, under the fair value method, the increase in the total income including any unronized gains of losses will be of P due to the investment in Swill be $9.000 $6,000 $23,000 $17.000