(Module 2 only) Consolidation Worksheet: Equity Method Use the information provided in Prob¬

lem 2-1 but assume that the parent uses the equity method.

1 Analyze the parent’s Investment account for 2006 (work backward to do so).

2 Prepare all consolidation entries as of 12/31/06.

3 Prepare a consolidation worksheet at 12/31/06.