Equity method.

On January $20,2023,$ the XYZ Company acquired $30\%$ of the ABC Company for $$300,000$ in cash.

On that date the balance sheet of ABC company was as follows:

$\backslash$table$[[$Assets$,,$Liabilities and Equity$],[\backslash$table$[[$Current Assets$],[400,000]],$$$,\backslash$table$[[$Current liabilities$],[$$$500,000$