IBM Corporation, a U.S. Company, formed a subsidiary with a new company in Paris on January 1, 2019, by investing 400,000 Euro in exchange for all of the subsidiary’s common stock. On July 1, 2019, the subsidiary purchased land for 100,000 Euro and a building for 300,000 Euro. The building is being depreciated over a 40-year life by the straight-line method. The inventory is valued at historical cost.The Euro is the subsidiary’s functional currency and its reporting currency. Exchange rates for the Euro on various dates were:

January 1, 2019	1 Euro = 1.51
July 1, 2019	1 Euro = 1.56
December 31, 2019	1 Euro = 1.53
2019 average rate	1 Euro = 1.52

The subsidiary’s adjusted trial balance is presented below for the year ended December 31, 2019.

	Debits	Credit
Cash	100,000
Accounts receivable	60,000
Inventory	80,000
Land	100,000
Building	300,000
Accumulated depreciation		3,750
Accounts payable		84,000
Notes Payable		16,750
Common stock		400,000
Retained earnings		0
Sales revenue		443,000
Cost of goods sold	213,750
Depreciation expense	3,750
Other expenses	90,000
Total	947,500	947,500

(Using the current rate method)

Instructions:

Translated trial balance (round to the nearest dollar).

Translated income statement.

Translated retained earnings statement.

Translated balance sheet statement.

Answer rating: 100% (QA)

1 Translated Trial Balance Particulars Dr Cr Conversion Rate Dr Cr Cash 100000 156 156000 Accounts R... View the full answer