On January $1$st$,2024,$ a U$.$S$.$ company purchased $100\%$ of the outstanding stock of Cullumber grains, a company located in Lake City New Zealand. Cullumber grains was organized on January $1$st $2005.$ All the property, plan, and equipment held on January $1$st$,2024$ was acquired when the company was organized. The business combination was accounted for as a purchase transaction. The $2024$ financial statements were Cullumber grains, prepared in its local currency, the New Zealand dollar, are given here.

Cullumber grains

comparative balance sheets

January $1$st and December $31$st$,2024$

Jan $1$ Dec $31$

cash and receivables $500,000887,000$

Inventories $601,000497,000$

Land $402,000402,000$

Buildings $($net$)656,000609,000$

Equipment $($net$)468,000472,000$

Totals $2,627,0002,867,000$

short term accounts & notes $292,000210,000$

long term notes $(599,000$ issued September $1$st$,2016,85,000$ issued July $1$st$,2024)$

$599,000684,000$

common stock $800,000800,000$

additional paid in capital $200,000200,000$

retained earnings $736,000973,000$

total $2,627,0002,867,000$

Cullumber grains

consolidated income and retained earnings statement for the year ended December $31$st$,2024$

revenues $3,217,000$

cost of goods sold:

beginning inventory $601,000$

purchases $2,095,000$

goods available for sale $2,696,000$

less: ending inventory $497,000$

cost of goods sold $2,199,000$

gross profit on sales $1,018,000$

depreciation expense $142,000$

other expenses $535,000677,000$

net income $341,000$

January $1$st retained earnings $736,000$

Total $1,077,000$

less: dividends paid $104,000$

December $1$st retained earnings $973,000$

the account balances are computed in conformity with US generally accepted accounting standards.

Other information is as follows:

$1.$ direct exchange rates for the New Zealand dollar on various dates were:

Date Exchange Rate

January $1$st$,20050\mathrm{.}8011$

September $1$st$,20150\mathrm{.}5813$

January $1$st$,20240\mathrm{.}7924$

July $1$st$,20240\mathrm{.}7412$

December $31$st$,20240\mathrm{.}7298$

average for $20240\mathrm{.}7480$

Average for the last four months of $20240\mathrm{.}7476$

$2.$ Cullumber grains purchase additional equipment for $99,000$ New Zealand dollars on July $1$st$,2024,$ by issuing a no for $85,000$ New Zealand dollars and paying the balance in cash.

$3.$ Sales were made in purchases and other expenses were incurred evenly throughout the year.

$4.$ Depreciation for the period in New Zealand dollars was computed as follows:

Building $47,000$

Equipment $-$ purchased before $1/1/202485,100$

Equipment $-$ purchased July $1$st$,20249,900$

$5.$ the inventory is valued on a fifo basis. The beginning inventory was acquired when the exchange rate was $$0\mathrm{.}7480.$ The ending inventory was acquired during the last four months of $2024.$

$6.$ Dividends of $52,000$ New Zealand dollars were paid on July $1$st and December $31$st$.$

Read measure the financial statements into dollars assuming that the US dollar was identified as the functional currency of the foreign subsidiary as one part and then prepare a schedule to verify the translation adjustment to terminate the one part. Round answers to $0$ decimal places e$.$g$.5,125.$ Enter loss and debit translation Adjustment using either a negative sign preceding the number e$.$g$.-2,945$ or parentheses e$.$g$.(2,945).)$