Question

Exercise 13-4
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 financial statements stated in Swiss francs are given below.
GRANT MANAGEMENT CONSULTANTS
Comparative Balance Sheets
January 1 and December 31, 2014
		Jan. 1		Dec. 31
Cash and Receivables		19,600		55,700
Net Property, Plant, and Equipment		39,600		36,800
Totals		59,200		92,500
Accounts and Notes Payable		30,100		32,200
Common Stock		19,700		19,700
Retained Earnings		9,400		40,600
Totals		59,200		92,500
GRANT MANAGEMENT CONSULTANTS
Consolidated Income and Retained Earnings Statement
for the Year Ended December 31, 2014
Revenues		76,500
Operating Expenses including Depreciation of 2,800 francs		30,000
Net Income		46,500
Dividends Declared and Paid		15,300
Increase in Retained Earnings		31,200
Direct exchange rates for Swiss franc are:
		Dollars per Franc
1-Jan-14		$0.60
########		0.5321
Average for 2014		0.5654
Dividend declaration and payment date		0.581
	Collapse question part
	(a)
	Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to 0 decimal places,

Answer 1