WHY does P Company report $320,000, which is more than their actual investment?

A - How would this answer differ if P Company owned

B -What about if P Company owned > 51%

C - What about if P Company did not use the Equity method?

D - What about if there HAD been goodwill?

How wortd tmis nongned Use the following information to answer questions 9 and 10, Assume that P Company owns 40% of S Company and uses the Equity Method to account for its Investment in S Co. When P Co. originally bought the investment, it paid an amount equal to 40% of the book value of S Co.'s net assets, so there was no goodwill. The following information was included in P Co.'s balance sheet 12/31/X0 12/31/X1 $100,000 $150,000 Investment in S Co. uring the year 20X1, P Co. received $270,000 in cash from S Co., representing its share of S Diidand Co.'s dividends declared during the year. Ravenue 9. How much will P statement? Co. report as revenue related to this investment on its 20X2 income a. $270,000 b. $ 50,000 $320,000 d. $220,000 e. $675,000 f. cannot tell from the information given