SpyAli

If parent has 500 equity, then aquired 80% of a company with 400 equity, how are these reported under consolidation? Which of the following interpretation is correct?

1. Consolidation = Report 500 + 320 (your 80% share) + 80 (minority interest)
2. Consolidation = Report 500 + 400 (subsidiary's complete equity) + 80 (minority interest)

Which of these is correct, if any, and what will be the total equity?

Please help, I think this is the only thing I'm not sure of under M&A reporting.