Question: When a parent company applies the initial value method or the partial equity method to an investment, worksheet adjustment must be made to the parents

When a parent company applies the initial value method or the partial equity method to an investment, worksheet adjustment must be made to the parent’s beginning Retained Earnings account (Entry *C) in every period after the year of acquisition. What is the necessity for this entry? Why is no similar entry found when the parent utilizes the equity method?

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