Question

The OUI Company is a French Company which was purchased by the YES Company which is an American Company in 2010
	The Financial Statements of OUI Company in Euros but following U.S. GAAP are as follows:
		Income Statement		(in Euros)
		For Year 2017
		OUI Company
	sales			800000
	cost of goods sold			300,000
	gross profit			500,000
	depreciation building			100,000
	depreciation equipment			50,000
	operating expenses			100,000
	gain on sale of land			300,000
	income			550,000
		31-Dec-17
		Balance Sheet
		OUI Company
	cash		500,000
	accounts receivable		500,000
	inventory		1,000,000
	equipment (net)		1,000,000
	building (net)		8,000,000
	land		1,000,000
	total assets		12,000,000
	accounts payable		2,000,000
	note payable		2,000,000
	common stock		5,000,000
	retained earnings		3,000,000
	additional information:
	When YES Company purchased the stock of OUI Company; the Euro was worth $1.25
	When OUI Company purchased the building, the Euro was worth $1.10
	When OUI Company purchased the equipment the Euro was worth $1.04
	When OUI Company purchased the land the Euro was worth $1.11
	During 2017 the average rate was 1 Euro worth $1.07
	On December 31, 2017 the Euro is worth $1.01
	On December 31, 2016 The Retained Earnings of OUI in dollars was $4,000,000
	OUI sold the land on August 20th when the Euro was worth $1.01
	On October 4th OUI paid a 800,000 dividend when the dividend was worth $1.09
	REQUIRED: PREPARE A BALANCE SHEET, INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS IN DOLLARS IF
		THE EURO IS THE FUNCTIONAL CURRENCY

Answer 1