1) If P Co. uses equity method, the entry to record net loss reported by S Co. in year 2019 will include: *

a) Credit Cash $27,000

b) Debit Equity Loss $27,000

c) Debit Equity Income $27,000

d) Debit Investment in S Co $27,000

2) If P Co. uses cost method, the entry to record distributed dividend by S Co. in year 2018 will include: *

a) Credit Investment in S Co. $45,000

b) Debit Cash $45,000

c) Credit Investment in S Co. $50,000

d) Debit Cash $50,000

3)If P Co. uses cost method, the entry to record distributed dividend by S Co. in year 2019 will include: *

a)Credit Equity in Subsidiary Income $13,500

b)Credit Investment in S Co. $13,500

c)Credit Dividend Income $13,500

d)Credit Cash $13,500

P Company acquired 90% of the outstanding common stock of S Company on January 2, 2018 for $1,800,000. At that time, S Co. total stockholders' equity amounted to $1,500,000. S Company reported net income and dividends for the last two years as follows: Reported net income (loss) Dividends distributed 2018 $110,000 50,000 2019 ($30,000) 15,000 Use the above information to answer the following