On January 1, 2014, Trenten Systems, a U.S.-based company, purchased

On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2014 financial statements stated in Swiss francs are given below.

On January 1, 2014, Trenten Systems, a U.S.-based company, purchased

Direct exchange rates for Swiss franc are:
Dollars per Franc
January 1, 2014 .........................................$.5987
December 31, 2014 .................................... .5321
Average for 2014 ...................................... .5654
Dividend declaration and payment date ........... .5810
Required:
A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation.
B. Prepare a schedule to verify the translation adjustment.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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