Caterpillar Inc. is a major producer and supplier of construction equipment, industrial machinery, and related financial services. Its annual report shows consolidating information for its two major business units. Machinery & Engines, and Financial Products. Each of these business units may in turn be composed of multiple companies. These data appear in Caterpillar's 2007 annual report:

Required
a. Which business unit is the parent company? How do you know?
b. No goodwill arises in the consolidation of Machinery & Engines with Financial Products. What is a likely explanation?
c. Why is consolidated goodwill already on the books of Machinery & Engines?
d. How much intercompany revenue was earned, and by which entity?
e. Using the data in the Consolidating Adjustments column, reconstruct the entry necessary to eliminate the Investment in Financial Products.
f. Describe the apparent main intercompany activity between Machinery & Engines and Financial Products.

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Results of Operations Machinery Financial Consolidating Consolidated& Engines Products Adjustments (in millions) Sales and revenues: $41962 2,906 44.958 Sales of Machinery & Engines $41,962 3,396 3.396 otal...NNN 41,962 Machinery Financial Consolidating Consolidated &Engines Products Adjustments in millions) Operating costs: Cost of goods sold.. SG&A expennes.. Research &development... Interest expense of Financial Products. Other operating 32,626 3,821 1.404 1.132 1054 40.037 32,626 3,356 1,404 480 (15) 1.137 1,080 2.706 690 (27) otal. Operating profit...4,921 Other interest expenne Other income (expense) Profit before tax... 288) 320 4.953 1,485 37,378 4,584 (294) (1) 77 767 347 186 ,220 502 Profit of consolidated companies Equity in profit of unconsolidated companies Equity in profit of Financial Products Profit 3,468 73 69 506 .**..- S 3.541 $3541 s 506 500 Machinery Financial Consolidating Consolidated& Engines Products Adjustments in millions) Assets Current assets: 1,122 7,503 Recoivabies, finance Deferred taxes....NnNAN**. Prepaid expenses .204 7-204 1,855 Total current assets ca25,477 Property, plant & equipment,net..ww. Long-torm roceivables, trade Long-term finance receivables.. stment in unconsolidated companies nvestment in Finanicial Products... Noncurrent deferred taxes Intangible assets 3,948) 1,963 1,963 Other assets...eananenn. Total assets.. 1,829 $30,870 $56,132 $30,052 Liabilities Current liabilitios: $ 5,468 S (275) 8 Accounts payable Accrued expenses Accrued salaries, wages & benefits... Customer advances Dividends payable 1,047 Total current labilities Long-term debt due after one year … … Lability for postemployment benefits.... 1 7,829 14,190 47,249 Total liabilities Stockholders' Equity Common stock. Treasury stock Profit employed in the business17,398 Accumulated other comprehensive income 2 17.-398 Total stockholders equity Total liabilities and stockholders' equity$56,132 8.883 30,052$30,870