It is common for a parent firm to record its investment in a subsidiary under either the cost or simple equity method to expedite the elimination process. This does create some complications, however, when all or a portion of the investment is sold. Assume that in each of the following cases, the parent sells its investment midway through its fiscal year.

(1) The parent owned an 80% interest and sold all of its holdings. (2) The parent owned an 80% interest and sold a 20% interest to reduce its ownership percentage to 60%. (3) The parent owned an 80% interest and sold a 60% interest to reduce its ownership percentage to 20%.