LiquidAssets10

This is always done. Equity method - if parent paid more than the pro-rata share of fair market value of net assets of sub. - the difference is attributed to Goodwill and is embedded within the single line item called “Investment in subsidiary”. Now if that excess is attributable to tangible assets on the subsidiary - that excess must be depreciated.
That extra depreciation reduces both the equity Income (Income statement) and also affects the Investment in Subsidiary line item. See pg 121 on Schweser for an example.