Elimination entries are recorded in the consolidation worksheet to adjust the subsidiary's assets and liabilities to reflect fair values, and to remove the investment account and pre-acquisition equity of the subsidiary. What is the purpose of recording elimination entries in the consolidation worksheet?
1) To adjust the subsidiary's assets and liabilities to reflect fair values
2) To remove the investment account and pre-acquisition equity of the subsidiary
3) To consolidate the financial statements of the subsidiary with those of the parent company
4) To calculate the goodwill arising from the acquisition of the subsidiary