Foreign Currency Translation-Current Rate Method LO 7 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 finan cial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan / Dec. 31 Cash and Receivables Net Property, Plant, and Equipment Totals 20,000 40,000 000XXO 55.000 37.000 92,000 Accounts and Notes Payable Common Stock Retained Earnings Totals 30,000 20,000 10,000 60.000 32,000 20,000 40,00 92.000 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Revenues Operating Expenses including Depreciation of 3,000 francs Net Income Dividends Declared and Paid Increase in Retained Earnings 75,000 30.000 45.CO ISODIO VO Direct exchange rates for Swiss franc are: January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date Dollars per Franc S.597 5321 5654 .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