Kerry Manufacturing Company is a German subsidiary of a U.S. company. Kerry records its operations and prepares financial statements in euros. However, its functional currency is the British pound. Kerry was organized and acquired by the U.S. company on June 1, 20X4. The cumulative translation adjustment as of December 31, 20X6, was $79,860. The value of the subsidiary's retained earnings expressed in British pounds and U.S. dollars as of December 31, 20X7, was 365,000 pounds and $618,000, respectively. On March 1, 20X7, Kerry declared a dividend of 120,000 euros. The trial balance of Kerry in euros as of December 31, 20X7, is as follows:

The marketable securities were acquired on November 1, 20X6, and the prepaid insurance was acquired
on December 1, 20X7. The cost of goods sold and the ending inventory are calculated by the weighted-average method.

The following items are measured in pound at the December 31, 20x7.

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Debit 240,000 Credit Cash Accounts Receivable (net) Inventory (at cost) Marketable Securities (at cost) Prepaid Insurance Depreciable Assets Accumulated Depreciation Cost of Goods Sold Selling, General, and Administrative Expense 2,760,000 3,720,000 2,040,000 210,000 8,730,000 1,417,000 17,697,000 4,762,000 26,430,000 Sales Revenue 180,000 Investment Income Accounts Payable 2,120,000 Uneamed Sales Revenue 960,000 Loans and Mortgage Payable 5,872,000 1,500,000 Common Stock Paid-in Capital in Excess of Par Retained Eamings 210,000 1,470,000 Total 40.159.000 40.159.000 Euros Pounds Accumulated depreciation Depreciable Assets Cost of Goods Sold Selling, General, Admin. Expense Accumulated Depreciation 8,730,000 17,697,000 4,762,000 2,671,380 5,262,294 1,415,886 1,417,000 773,915 Sales Revenue 26,430,000 7,866,030