This is in reference to CFAI mock 2010 question no. 36
Question is what will be the parent’s Shareholder’s equity after consolidation of balance sheet under US GAAP ?
Solution – 1300 (Parent’s equity ) + 1000*0.5 (subsidiary’s equity) = 1800
Do we add equity in parents b/s under any of the three methods – Equity , Proportionate consolidation or Consolidation ?