Use this worksheet to consolidate this parent and foreign subsidiary. The subsidiary's accounts have been remeasured into dollars using the temporal method. The differential represents the the imbalance in the co The parent uses the equity method to track its investment in the sub. Numbers in millions Elimination Entries Consolidated Parent Subsidiary debit credit Statements Sales revenue 154,000 40,000 Equity income 8,000 COGS 60,000 10,000 Other expenses -34.000 12,000 Net Income 78.000 18,000 Beg. retained earnings 136,000 25,000 Net income 78,000 18,000 Dividends -20,000 7,000 End retained earnings 194,000 36,000 Cash 17,000 6,000 Receivables 40.000 12,000 Inventory 96,000 3,000 Prepaid assets 14,000 3,000 Buildings and equipment 250,000 80,000 Acc. Depreciation 120,000 35,000 Investment in Sub 46,000 Total assets 343,000 79,000 Accrued liabilities 15.000 7,000 Bonds payable 30.000 21,000 Deferred Tax liability 4,000 2,000 Common stock 100,000 10,000 Retained earnings 194.000 36,000 Differential 3,000 Total liabilities and equity 343,000 79.000