Question: If a parent uses the equity method but does not amortize the difference between fair value and book value on its separate books, its net

If a parent uses the equity method but does not amortize the difference between fair value and bookvalue on its separate books, its net income and retained earnings will not equal its share ofconsolidated net income and consolidated retained earnings. How does this affect consolidationworkpaper procedures? Please provide examples in your response.

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