1. S is an 80% owned subsidiary of P, Inc. P accounts for S using the equity method. The following facts apply: On January 2, 2020, S purchased a machine with

a cost of $100,000 and accumulated depreciation of $20,000 from P for $110,000. The machine had a 5-year remaining life on January 2, 2020, and is being depreciated by the straight-line method. In 2023 P reported net income of $150,000 without including income from S. S reported net income of $100,000.