At the date of an 80% acquisition, a subsidiary had common stock of $100,000 and retained earnings

Question:

At the date of an 80% acquisition, a subsidiary had common stock of $100,000 and retained earnings of $16,250. Seven years later, at December 31, 2013, the subsidiary's retained earnings had increased to $461,430. What adjustment will be made on the consolidated workpaper at December 31, 2014, to recognize the parent's share of the cumulative undistributed profits (losses) of its subsidiary? Under which method(s) is this adjustment needed? Why?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...