Working backward to consolidation relations. Laesch Company, as parent, owns shares in Lily Company. Laesch has owned
a. If Laesch owns 80% of Lily, its consolidated subsidiary, what are the retained earnings of the subsidiary?
b. If Lily has retained earnings of $77,000, what fraction of Lily does Laesch own?
c. If Laesch had not consolidated Lily but instead had accounted for it using the equity method, how much revenue would Laesch have recognized from the investment?
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