Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 22

Livingston Company is a wholly owned subsidiary of Rose Corporation. Livingston operates in a foreign country with financial statements recorded in goghs (GH), the company's functional currency. Financial statements for the year of 2015 are as follows:

Additional Information
• The common stock was issued in 2004 when the exchange rate was $2.08 per GH; fixed assets were acquired in 2005 when the rate was $2.00 per GH.
• As of January 1, 2015, the Retained Earnings balance was translated as $395,000.
• The U.S.$ per GH exchange rates for $1 for the current year follow:

• Inventory was acquired evenly throughout the year.
• The December 31, 2015, balance sheet reported a translation adjustment with a $85,000 debit balance.
• Dividends were declared on April 1, 2015, and a piece of equipment was sold on September 1, 2015.
Translate the foreign currency statements into the parent's reporting currency, the U.S. dollar.