Question

Hook Corp. is a wholly owned, parent- founded subsidiary of Chappell Inc. The unconsolidated statement of comprehensive income and the retained earnings section of the statement of changes in equity for the two companies for the year ended December 31, 20X6, are as follows:


Additional Information
1. During the year, Hook acquired merchandise from Chappell at a total sale price of $ 900,000. None of the merchandise was in Hook’s inventory at year- end.
2. At the beginning of the year, Hook borrowed $ 800,000 from Chappell at 10% interest per annum. The loan (and accrued interest) was still outstanding at the end of the year.
3. Chappell carries its investment in Hook at the cost basis in its accounts.

Required
Prepare a consolidated statement of comprehensive income and the retained earnings section of the statement of changes in equity for Chappell Inc., for the year ended December 31,20X6.


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  • CreatedMarch 13, 2015
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