Chapter 3, Problem 9E

To determine

Equity method:

The equity method basically keeps the record of the parent’s ownership interest in the net income of the subsidiary.

Cost method:

The cost method basically retains the original cost of acquisition balance in the subsidiary account. As the income is earned by the subsidiary, no adjustments would be made.

To prepare:

The amortization schedule for the years $2015,2016,2017\text{ \& 2018}$ .