How would the answer to problem(4) have been affected if the parent had applied the initial value method rather than the equity method?
a. No effect: The method the parent uses is for internal reporting purposesonly and has noimpact on consolidated totals.
b. The consolidated Equipment account would have a higher reported balance.
c. The consolidated Equipment account would have a lower reported balance.
d. The balance in the consolidated Equipment account cannot be determined for the initial value method using the information given.
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