Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 57

When a parent company applies the initial value method or the partial equity method to an investment, a worksheet adjustment must be made to the parent's beginning Retained Earn­ings account (Entry *C) in every period after the year of acquisition. What is the necessity for this entry Why is no similar entry found when the parent utilizes the equity method