Describe how, despite the fact they include different accounts, conceptually, the [C] entry under the equity method of pre-consolidation bookkeeping is the same as the [C] entry under the cost method of pre-consolidation bookkeeping.

Please be specific. Please use your own words and do not copy and paste the answer from the test bank (I have it). Thank you!!!

[C] Income (loss) from subsidiary . . . . . 151,000 10,000 Eliminates the Equity Income and intercompany dividends [E] Common stock (S) @ BOY. 100,000125,000425,000650,000 Eliminates the BOY stockholders' equity of subsidiary: [D] Depreciation expense. Records depreciation expense related to AAP Building, net. 20,000 20,000 [I lcogs] Retained earnings (P) @ BOY ............ 12,000 Reduces BOY Retained Earnings of parent and Cost of goods sold............... 12,000 recognizes deferred gain in current period [I sales] Sales Cost of goods sold. 200,000200,000EliminatescurreGoodsSold [Icogss] Cost of goods sold 15,000 Defers current period profit on intercompany sale of Inventory 15,000 inventories [Ipay] Accounts payable. 30,000 Eliminates intercompany receivable and payable Accounts receivable. 30,000