On January 1, 2016, Company P purchased a 90% interest in Company S for $360,000.Company P prepared the following determination and distribution of excess schedule at that time:
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\begin{array}{lrrr}\text { D\&D Schedule } & \text { Entity } & \text { Parent } & \text { NCI } \\\text { Entity Fair Value } & \$ \underline{400,000} & 360,000 & 40,000 \\\text { Book value: } & & & \\\quad \text { Paid-In Capital - Common } & 200,000 & & \\\quad \text { Retained Earnings } & \underline{100,000} & & \\\quad \text { Book value: } & \underline{\underline{300,000}} & \underline{270,000} & \underline{\underline{30,000}} \\\text { Excess } & \underline{\underline{100,000}} & \underline{90,000} & \underline{\underline{10,000}} \\\text { Building } &60,000 & 20 \text { years } & 3,000 \\\text { Goodwill } & \underline{40,000} & & \\\text { Total } & \underline{100,000} & &\end{array}

Company S had income of $30,000 for 2016 and $40,000 for 2017.No dividends were paid.Company P sold its entire investment in Company S on January 1, 2019, for $340,000.
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Required:
Prepare Company P's entries to record the sale assuming that Company P used the
a.simple equity method to reflect its investment in Company S.
b.cost method to reflect its investment in Company S.

In the Year a Parent Sells Its Entire Subsidiary Investment

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