“If a parent company elects to use the partial equity method rather than the cost method to record its investments in subsidiaries, what effect will

“If a parent company elects to use the partial equity method rather than the cost method to record its investments in subsidiaries, what effect will this choice have on the consolidated financial statements?If the parent company elects to use the complete equity method? “

Under the partial equity method, the parent reports its share of earnings, and so on, of thesubsidiary on its books using the equity method, but any differential between acquisition costand…