How would the answer to problem (4) have been affected if the parent had applied the initial value method rather than the partial equity method? LO1

a. No effect: The method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.

b. The consolidated Equipment account would have a higher reported balance.

c. The consolidated Equipment account would have a lower reported balance.

d. The balance in the consolidated Equipment account cannot be determined for the initial value method using the information given.