Answer:
Parent company retained earnings equals consolidated retained earnings.
FALSE
Explanation:
When the company acquired the subsidiary, it already had a retained earnings balance. This will be added to parent company retained earnings in the consolidated balance.
Parent Equity
Common Stock 100
RE 200
Subsidiary:
Common Stock 10
Re 5
As the subsidiary retained earnings will change by his net income and dividends it will differ to parent company as the parent dividends will be different as well as the income for the year.