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4. P acquired 100% shares of S on Jan 1,2018 for $200,000. On that date S reported a common stock of $100,000 and retained earnings of $60,000. All assets of S have fair values equal to the book values except for equipment that has a fair value of $40,000 above the book value. This equipment has a remaining useful life of 10 years. During 2018,S reported a net income of $60,000 and paid dividend of $20,000. In the following Consolidation Entry on December 31,2018 , to close the common stock and retained earnings of S, what amount will be credited to the Investment in S account? Common Stock XXX Debit 100000 Retained Earnings XXX Debit 60000 Income from subsidiary XXX Debit 60000 Investment in S Account XXX Credit Dividends Declared XXX Credit 20000 a. $55,000 b. $200,000 c. $220,000 6. Grant, Inc. acquired 30 percent of South Co.'s voting stock for $200,000 on January 2,204. Grant's 30 percent interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. During 20X4, South earned $80,000 and paid dividends of $50,000. South reported earnings of $100,000 for the six months ended June 30,205, and $200,000 for the year ended December 31, 20X5. On July 1,205, Grant sold 1/4th of its stock in South for $94,750 cash. South paid dividends of $60,000 on October 1 , 205. In its 205 income statement, what amount should Grant report as a gain from the sale of 1/4th of its investment? a. $35,000 b. $24,500 c. $30,500 d. $45,500