On December 15, MSC Corporation acquires its first foreign affiliate by acquiring 100 percent of the net assets of the Armaselah Oil Company based in Saudi Arabia for 930,000,000 Saudi Arabian riyals.(SAR). At the time, the exchange rate was $1.00 = SAR3.750.

The acquisition price is traceable to the following identifiable assets:

Cash SAR 60,000,000 Inventory 120,000,000 Fixed assets 750,000,000 As a calendar-year company, MSC Corporation prepares consolidated financial statements every December