If the companies consolidate their financial statements, the parent company has an equity investment in the subsidiary (asset), while the subsidiary has equity (common stock, additional paid-in capital, etc.). When the consolidation is performed, eliminating entries are made, and the investment on the parents books is offset by the equity on the subsidiary's books.
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If the companies consolidate their financial statements, the parent company has an equity investment in the subsidiary (asset), while the subsidiary has equity (common stock, additional paid-in capital, etc.). When the consolidation is performed, eliminating entries are made, and the investment on the parents books is offset by the equity on the subsidiary's books.