On January 1, 2012, Bélanger acquired a 30% interest in one of its suppliers, Chime, at a cost of $13,650. The directors of Bélanger believe they exert significant influence over Chime. The equity of Chime at acquisition date was:
Share capital (20,000 shares) ..... $20,000
Retained earnings ......... 10,000
$30,000
All the identifiable assets and liabilities of Chime at January 1, 2012, were recorded at fair values except for some depreciable non-current assets with a fair value of $15,000 greater than carrying amount. These depreciable assets are expected to have a further five-year life.
Additional information:
1. At December 31, 2013, Bélanger had inventory costing $100,000 on hand (2012 inventory on hand costing€”$60,000) that had been purchased from Chime. A profit before tax of $30,000 (2012€”$10,000) had been made on the sale.
2. Assume a tax rate of 30% applies.
3. Information about income and changes in equity of Chime as at December 31, 2013, is:

4. Dividend revenue is recognized when declared by directors.
5. The equity of Chime at December 31, 2013, was:
Share capital ................. $ 20,000
Cumulative other comprehensive income ..... 30,000
Retained earnings ............... 130,000
$180,000
The cumulative other comprehensive income arose from a revaluation of land made at December 31, 2013.
Required
(a) Assume Bélanger does not prepare consolidated financial statements. Prepare the journal entries in the books of Bélanger for the year ended December 31, 2013, in relation to the investment in Chime.
(b) Assume Bélanger does prepare consolidated financial statements. Calculate the share of profit or loss from Chime on the consolidated comprehensive income statement for the year ending December 31, 2013, and the balance in the Investment account on the consolidated statement of financial position.

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Income before tax Income tax expense Profit Retained earnings at 1/1/13 Dividend paid Dividend declared Retained earnings at 31/12/13 $360,000 180,000 180,000 50,000 $50,000 50,000 100,000 $130,000