Crumple Car Corporation produces fuel-efficient automobiles and sells them through a vast dealer network. It has two wholly owned subsidiaries. One subsidiary provides financing for approximately 70 percent of all automobile sales of the parent company and its dealers. The other subsidiary purchases approximately 15 percent of the parent company's production and leases the cars to other companies. Until recently, the parent company accounted for both subsidiaries using the equity method and reported them in its consolidated financial statements as intercorporate investments. It is now fully consolidating both subsidiaries.

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a. What specific accounts or items within the consolidated financial statements could be expected to be different when both subsidiaries are fully consolidated?

b. Given that Crumple Car Corporation is a manufacturer and distributor, and its two subsidiaries both are financing-type companies, what arguments can be given for not consolidating either subsidiary? What arguments can be given for consolidating both subsidiaries?