On January 1, 2008, 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 2008 financial statements stated in Swiss francs are given below.

Direct exchange rates for Swiss franc are:
Dollars per Franc
January 1, 2008..........$.5987
December 31, 2008........5321
Average for 2008........5654
Dividend declaration and payment date...5810

Required:
A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation.
B. Prepare a schedule to verify the translationadjustment.

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GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2008 arn Dec. 31 Cash and Receivables Net Property, Plant, and Equipment 20,000 40,000 60,000 55,000 37,000 92,000 Totals 32,000 20,000 40,000 92,000 Accounts and Notes Payable Common Stock 30,000 20,000 10,000 60,000 Retained Earnings Totals GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2008 75,000 30,000 45,000 15,000 30,000 Revenues Operating Expenses including Depreciation of 3,000 francs Net Income Dividends Declared and Paid Increase in Retained Earnings