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 have of S have a fair value equal to the book value except for equipment that has a fair value of 40,000 above the books value. This equipment has a remaining useful life of 10 years. During 2018, S reported a net income of $80,000 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? (Hint: in this you must also calculate the ending balance of RE of Company S on Dec 31, 2018)
Common Stock XXX
Retained Earnings XXX
Investment in S Account XXX
$55,000
$0
$220,000
$60,000