In 2016, Parent Company acquired 80 percent of the outstanding voting shares of Subsidiary Company, establishing control over the board of directors. Parent Company used the cost method of accounting for the investment during the year, but prepared consolidated financial statements at the end of the year. The consolidated financial statements are summarised below:

1. Explain the meaning of the accounts appearing on the consolidated balance sheet that do not appear on either of the unconsolidated balance sheets.
2. Certain accounts and amounts from the unconsolidated statement do not appear on the consolidated statements. Identify these amounts and accounts and explain why they are eliminated in the consolidation.
3. Accounts receivable and accounts payable on the unconsolidated statement do not total to the amount shown on the consolidated statements. What is the most likely reason for this?

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Cash Accounts receivable Inventory Property, plant and equipment Investments in Subsidiary Company Intangible assets Current liabilities Noncurrent liabilities Non-controlling interests Share capital Retained earnings Revenue Cost of goods sold Operating expenses Non-controlling interest Net profit Retained earnings, beginning of year Dividends Parent $ 14000 27 000 18500 110000 92 000 261 500 37 000 5000 125 000 94 500 261 500 110000 70 000 22 000 18000 89 000 12 500 94 500 Subsidiary Consolidated 15000 24000 11500 80500 131 000 11500 3 000 75000 41500 131000 77000 42500 21500 13000 33 500 5000 41500 29 000 45 000 30000 190500 5 200 299700 42 500 8000 25 200 125000 99000 299700 167000 96500 43 500 4500 22 500 89000 12 500 99000