A parent company owns 55% of the ordinary voting shares of a subsidiary. The parent has control over the subsidiary. Which of the following statements is correct? 1. The parent must prepare consolidated financial statements 2- The parent must use the fair value method 3- The parent can use the equity method but the subsidiary cannot be consolidated 4- The parent can use the equity method or the fair value method. On consolidated worksheets, the net income of a subsidiary is 1- Deducted from the amount of the initial retained earnings. 2- Deducted from the final balance of the retained earnings 3- Distributed between the participation of the non-controlling interests and the parent company 4- Only one entry in the parent ledger