The statements of financial position of Hui Inc. and Kozikowski Ltd. on December 31, Year 11, were as follows:

	Hui			Kozikowski Ltd.
	Carrying Amount			Carrying Amount			Fair Value
Land	$	408,000		$	88,000		$	208,000
Manufacturing facility		1,023,200			568,000			312,000
Accumulated depreciation		(308,000)			(224,000)
Accounts receivable		242,000			58,000			58,000
Cash		216,000
	$	1,581,200		$	490,000		$	578,000
Ordinary shares	$	58,000		$	18,000
Retained earnings		707,200			98,000
Long-term debt		533,000			306,000		$	291,200
Current liabilities		283,000			68,000			68,000
	$	1,581,200		$	490,000

Kozikowskis manufacturing facility is old and very costly to operate. For the year ended December 31, Year 11, the company lost money for the first time in its history. Kozikowski does not have the financial ability to refurbish the plant. It must either cease operations or find a partner to carry on operations.

On January 1, Year 12, Hui agreed to provide an interest-free loan of $208,000 to Kozikowski on the following terms and conditions:

• Hui Inc. would be hired by Kozikowski to refurbish the manufacturing facility at a fixed cost of $208,000 and would be retained to manage the business. The refurbishing costs would be capitalized.
• Hui Inc. would have full authority to make all major operating, investing, and financing decisions related to Kozikowski.
• The ordinary shares of Kozikowski were valued at $216,320 as at January 1, Year 12. Hui has the option to buy the shares of Kozikowski at any time after January 1, Year 17, at $216,320 plus any dividends in arrears.
• The existing shareholders of Kozikowski would be guaranteed a cumulative dividend of 8% a year on the value of their shares. Hui would receive the residual profits after the dividends were paid to the ordinary shareholders.

Kozikowski earned income of $208,000 and paid dividends of $52,000 over the five-year period ended December 31, Year 16. The statements of financial position of Hui Inc. and Kozikowski Ltd. on December 31, Year 16 were as follows:

	Hui			Kozikowski
Land	$	408,000		$	88,000
Manufacturing facility		1,023,200			776,000
Accumulated depreciation		(347,200)			(500,000)
Accounts receivable		297,000			98,000
Cash		28,000			181,600
	$	1,409,000		$	643,600
Ordinary shares	$	58,000		$	18,000
Retained earnings		690,600			254,000
Long-term debt		468,000			301,600
Current liabilities		192,400			70,000
	$	1,409,000		$	643,600

Assume that Kozikowski is a controlled special-purpose entity and Hui is the sponsor. The manufacturing facility had an estimated remaining useful life of 10 years as at January 1, Year 12. The long-term debt matures on December 31, Year 21. Prior to Year 12, Hui had no business relations with Kozikowski.

Required:

(a) Calculate consolidated retained earnings at December 31, Year 16. (Omit $ sign in your response.)

Consolidated retained earnings $

(b) Prepare a consolidated statement of financial position for Hui at December 31, Year 16. (Negative amounts should be indicated by a minus sign.)

Hui Inc.
Consolidated Statement of Financial Position
December 31, Year 16
Assets
	$0
Liabilities and Equity
	$0