Equity Method Use the following to answer the seven questions below On January 1, 2020, P Company purchased 80% of the outstanding common stock of S Company for $1,300,000. At that time, S Company's stockholders' equity consisted of common stock, $300,000; other contributed capital, $600,000; and retained earnings, $400,000. The difference between the implied value and the book value would be allocated to land. The company uses the equity method. The following Trial Balances were extracted from each company's records at December 31, 2020: S Company Debit Credit 1,350,000 200,000 600.000 900,000 Cash Receivables Investment in S Land Building Accounts payable Other Liabilities Common Stock ($5 par value) OCC Retained Earnings 1/1/2020 Dividends Declared Sales Equity in Subsidiary Income Cost of Goods Sold Operating Expenses Total P Company Debit Credit 7,885,000 600,000 2,140,000 1.800.000 900,000 300.000 1,800,000 900.000 1,800,000 1,200,000 2.625,000 35.000.000 1.200,000 15,750.000 10,500,000 42,200,000 42,200,000 100.000 600,000 300.000 600.000 400.000 450,000 6,000,000 2.700.000 1.800.000 8,000,000 8,000,000 The implied value exceeded the book value at the acquisition date by: * $-0- $325,000 $260,000 None of the above The eliminating entries required to prepare the consolidated financial statements on December 31, 2020 would include: * A debit to Equity in S income by $1,200,000 A debit to Land by $260,000 A debit to Dividends Declared by $360,000 None of the above s Company's net income for year 2020 from independent operations was: * $1,200,000 $6,000,000 $1,500,000 None of the above The share of NCI from the net income of S company during 2020 since acquisition * was: $1,200,000 $300,000 $1,500,000 None of the above The consolidated total revenues for 2020 was: * $35,000,000 $41,000,0000 $9,950,000 None of the above The consolidated Dividends Declared for * 2020 was: $2,625,500 $3,075,000 $2,958,000 O None of the above In the consolidated balance sheet on December 31, 2020, * Total equity was equal to $14,560,000 Total equity was equal to $11,225,000 Total equity was equal to $11,760,000 None of the above