2. S is an 80% owned subsidiary of P, Inc. The following facts apply to 2023: On January 1, 2023, S held $50,000 of merchandise sold to it from P. P

made sales to S during 2023 totaling $160,000. On December 31, 2023, S had $60,000 of such goods purchased from P in its ending inventory P always sells to Sat a 20% gross profit. In 2023 P reported net income of $400,000 without including income from S. S reported net income of $300,000. P accounts for S using the equity method.