The following balances were taken from the records of S Company: Common stock (1/1/11 and 12/31/11) $720,000 Retained earnings 1/1/11 $160,000 Net income for 2011 180,000 Dividends declared in 2011 (40,000) Retained earnings, 12/31/11 300,000 Total stockholders' equity on 12/31/11 $1,020,000 P Company purchased 25% of S Company's common stock on January 1, 2011 for $300,000 for cash. The difference between implied value and book value is attributable to fixed assets with a remaining useful life on January 1, 2011 of ten years. P can exert significant influence over S. Required