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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Separate-Entity Financial Statements Statements of Comprehensive Income Year Ended December 31, 20X6 Chappell Inc. Hook Corp. REVENUES Sales Interest Dividends 6,500,000 200,000 100,000 6,800,000 $2,100,000 60,000 Total revenue 2,160,000 EXPENSES Cost of goods sold Depreciation expense Administrative expense Income tax expense Other operating expenses 3,300,000 600,000 900,000 780,000 290,000 5,870,000 930,000 1,300,000 160,000 300,000 170,000 40,000 1,970,000 190,000 Total expense Net eamings Statements of Changes in Equity-Retained Earnings Section Year Ended December 31, 20X6 Retained eamings, January 1, 20x6 Net eamings Dividends declared Retained eamings, December 1, 20X6 1,920,000 930,000 (330,000) $2,520,000 520,000 190,000 (100,000) 610,000