$1$ Compile calculated translation adjustment amounts. On December $9,204,$ Simbel classified a fE $10,000$ expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of $205.$

The exchange rates for $1$ fE are as follows: Step Two

Acme and Simbel's U$.$S$.$ dollar accounts are then consolidated. Necessary consolidation entries are made in the consolidation worksheet.

On January I, $20$X$3,$ before acquiring Coyote, Acme Corporation acquired $100\%$ of Simbel Company for consideration transferred with a fair value of $$126,000.$ Acme is a U$.$S$.-$based company headquartered in Fairfield, New Jersey, and Simbel is in Cairo, Egypt. Acme accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. The following are the $20$ X $4$ financial statements for the two operations. Information for Acme and for Simbel is in U$.$S$.$ dollars $($ $ $)$ and Egyptian pounds $($fE$),$ respectively. declared the $204$ dividend on June $1.$

On December $9,204,$ Simbel classified a fE $10,000$ expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of $205.$

The exchange rates for $1$ fE are as follows: