P Corporation Acquired an 80% Interest in S Corporation Two

Multiple Choice

P Corporation acquired an 80% interest in S Corporation two years ago at an implied value equal to the book value of S.On January 2, 2014, S sold equipment with a five-year remaining life to P for a gain of $120,000.S reports net income of $600,000 for 2014 and pays dividends of $200,000.P's Equity from Subsidiary Income for 2014 is:

A) $480,000.
B) $384,000.
C) $403,200.
D) $576,000