During consolidation, the subsidiary ceases to exist, at least for the purposes of the financial statements, so it has no equity.However, if the subsidiary has minority owners -- that is, if the parent bought less than 100 percent of the subsidiary -- then their interest in the subsidiary must appear in equity.

Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you.

Consolidating multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner.

In the equity section, and on the equity statement, you'd create an entry for "minority interest" or "non-controlling interest" with a value of $18,000 -- the 20 percent of the $90,000 in net assets that you don't actually own.

On the consolidated income statement and cash flow statement, all the subsidiary's revenue, expenses, gains, losses and cash flows become those of the parent.

The two main ways to get out of default are loan rehabilitation and loan consolidation.

While loan rehabilitation takes several months to complete, you can quickly apply for loan consolidation.

He has contributed to USA Today, The Des Moines Register and Better Homes and Gardens"publications.

Merritt has a journalism degree from Drake University and is pursuing an MBA from the University of Iowa.

The payment reduction may come from a lower interest rate, a longer loan term, or a combination of both.