H owns 80% of A.
Investment in A at historical cost: 100
Actual Equity of A: 1000
Adjustment amount in H related to investment in A =
(80% * 1000) = 800 – 100 = 700
The EPU adjustment impacts both assets and equity in the holding company.
Investments in A: 700 (Debit)
Equity: 700 (Credit)
