Hattrick Corp

question 15

Essay

Hattrick Corp.is a wholly owned,parent-founded subsidiary of Bobby Inc.The unconsolidated statements of income and the statement of changes of retained earnings for the two companies for the year ended December 31,20X6,are as follows (in 000s):
Additional information:
• Bobby sells some of its output to Hattrick.During 20X6,intercompany sales amounted to $25,000,000.Hattrick has accounts payable owing to Bobby for $200,000 at December 31,20X6.
• Bobby owns the land on which Hattrick's building is located.Bobby leases the land to Hattrick for $30,000 per month.
Bobby accounts for its investment in Hattrick under the cost method
Assume that Bobby is a private corporation that reports under ASPE.Prepare the statement of income and retained earnings for Bobby for the year 20X6 using the equity method.

---

Definitions:

Conscious Recollection

The deliberate and aware remembering of information from one's past.

Frederic Bartlett

A pioneering cognitive psychologist known for his work on memory and cognitive schemas.

Unfamiliar Stories

Narratives or tales that are not previously known to the listener or reader, often used in psychological research to assess comprehension and memory.

Coherent

Logically connected or consistent in argument or presentation.