On January 1, 2014, Cayce Corporation acquired 100 percent of Simbel Company for consideration paid of $126,000, which was equal to fair value. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the cost method. Any excess of fair value over book value is attributable to undervalued land on Simbel€™s books. Simbel had no retained earnings at the date of acquisition. Following are the 2015 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (£E), respectively.

Additional Information
€¢ During 2014, the first year of joint operation, Simbel reported income of £E 163,000 earned evenly throughout the year. Simbel declared a dividend of £E 30,000 to Cayce on June 1 of that year. Simbel also declared the 2015 dividend on June 1.
€¢ On December 9, 2015, Simbel classified a £E 10,000 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2016.
€¢ The exchange rates for 1 £E are as follows:
January 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$0.300
June 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.290
Weighted average rate for 2014 . . . . . . . . . . . . . . . . . . . . 0.288
December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.280
June 1, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.275
October 1, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.273
Weighted average rate for 2015 . . . . . . . . . . . . . . . . . . . . 0.274
December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.270
Translate Simbel€™s 2015 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiary€™s functionalcurrency.

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Cayce Simbel Sales.. Cost of goods sold Salary expense Rent expense Other expenses Dividend income from Simbel Gain on sale of fixed asset, 10/1/15 Corporation $ 200,000 (93,800) (19,000) Company ЕЕ 800,000 (420,000) (74,000) (46,000) (59,000) (7,000) (21,000) 13,750 .. 30,000 EE 231,000 EE 133,000 231,000 (50,000) EE 314,000 EE 146,000 297,000 Net income S 72,950 $ 318,000 72,950 (24,000) $366,950 Retained earnings, 1/1/15 Net income Dividends Retained earnings, 12/31/15 Cash and receivables Inventory Prepaid expenses Investment in Simbel (cost) Fixed assets (net) $110,750 98,000 30,000 126,000 398,000 S762,750 455,000 EE 898,000 EE 54,000 140,000 240,000 150,000 314,000 EE 898,000 Total assets Accounts payable Notes payable-due in 2017 Common stock Additional paid-in capital Retained earnings, 12/31/15. . 60,800 132,000 120,000 83,000 366,950 762,750 Total liabilities and equities