What is the purpose of the following entry that is made each period subsequent to an intercompany sale of land until the period in which the land is resold outside of the consolidated group?

[I_gain] Equity investment .............................................. xxx

Land......................................................................................... xxx

———————————————————————————————————————

In your own words, describe the purpose of the [ADJ] consolidation entry when the parent company applies the cost method of pre-consolidation bookkeeping.

———————————————————————————————————————

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.