answers in the tabs below.

• Required A
• Required B
• Required C

Assume that Herberts internal net income figures above do not include any income from the subsidiary.

• If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2018?
• What would be the amount of consolidated retained earnings on December 31, 2018, if the parent had applied either the initial value or partial equity method for internal accounting purposes?

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Consolidated retained earnings (equity method)
Consolidated retained earnings (initial value method)
Consolidated retained earnings (partial equity method)