Summarized balance sheets of Corner Company and its subsidiary Brook Corporation on December 31, Year 4, were as follows:

On the date that Corner acquired its interest in Brook, there was no acquisition differential and the carrying amounts of Brook's net assets were equal to fair values. During Year 4, Corner reported a net loss of $60,000, while Brook reported a net income of $140,000. No dividends were declared by either company during Year 4. Corner uses the cost method to account for its investment.
Required:
Compute the following:
(a) The percentage of Brook's shares owned by Corner
(b) Consolidated net income attributable to Corner's shareholders for Year 4
(c) Corner's December 31, Year 3, retained earnings if it had used the equity method to account for its investment
(d) The retained earnings of Brook on the date that Corner acquired its interest in Brook

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Corner Brook Consolidated Current assets $ 160,000 640,000 600,000 $1,400,000 $700,000 $860,000 Investment in Brook (cost) Other assets 900,000 $1,600,000 $ 200,000 600,000 800,000 1,500,000 $2,360,000 $1,000,000 900,000 180,000 280,000 $2,360,000 Liabilities Common shares Retained earnings Non-controlling interest 800,000 900,000 (300,000) $1,400,000 $1,600,000