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1. For a purchase in which the subsidiary retains its incorporation, the parent company has three methods of internal recordkeeping that it can use

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1. For a purchase in which the subsidiary retains its incorporation, the parent company has three methods of internal recordkeeping that it can use the equity method, the partial equity method and the initial value method. Discuss each of the three methods. Include in your discussion the advantages and disadvantages of each of them and how the adjustments to the parent's investment account would differ under each. In which instances is the Consolidation Entry *C required and why?

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