How do you calculate income from subsidiary under the Equity Method?

Look at the financials for the sub's reported income. Multiply that number by the percentage of ownership by the parent. Calculate your adjustments to bring the subs accounts to fair value, and add or subtract them as needed from the parent's share. This number will be the income from sub.

Ex:

Sub's reported income: 3,000,000

Parents share 30%: 900,000

Disposal of Fair Value Adjustments

Inventory: (300,000)

OCA: 60,000

Equipment: (45,000)

Notes Pay.: (12,000)

Income From Sub : 900,000 - 300,000 + 60,000 - 45,000 - 12,000 = 603,000