For the Parent company, what is the correct journal entry to transfer fixed assets to the subsidiary?

DR - Capital Distribution (Equity)
CR - Equipment (Asset)

Or

DR - Investment Interest in Subsidiary (Asset)
CR - Equipment (Asset)

Or

??

Please help.

Thanks,
PP

Sorry I can't give you exact advise, as I only have experience with the New Zealand/International Reporting Standards.

But both are technically right as the first one in for when you hold a majority interest and second is for a minor interest.