Assume Sharp Co. a U.K. based subsidiary began operations on 1/1/18. On this date common stock of fair value 500,000 was issued in exchange for cash. Sharp Co.'s functional currency is GBP. Sharp Co.'s trial balance at December 31, 2018 is provided below.

Trial Balance 31-Dec-18 GBP (E) Cash 500,000 Accounts Receivable 200,000 Inventory 400,000 Property Plany & Equip, net 500,000 Patents, net 100,000 Accounts Payable (300,000) Long-term Debt (500,000) Common Stock (500,000) Retained Earnings 1/1 Total Revenues (1,000,000) Total Expenses 550,000 Dividends Declared 10/1 50,000 Net Balance Rates GBP-USD: 12/31/2018 1.25 10/1/2018 1.24 1/1/2018 1.30 Average 2018 1.26 Average 4th Quarter 2018 1.24 Rate When PPE acquired 1.28 Rate when Patent acquired 1.29