A subsidiary of a U.S. company began operations on January 1, 2017, in a country whose currency is identified as hyperinflationary. The subsidiary’s local currency (LC) is its functional currency. The subsidiary’s trial balances as of the beginning and end of 2017, in LC, are as follows (in millions):

Sales and out of pocket operating expenses were incurred evenly throughout the year.  The general price-level index for the country in which the subsidiary operates is:

Exchange rates (U.S. \($/LC)\) are:

Required 

Present the subsidiary’s balance sheet at December 31, 2017 and statement of comprehensive income for 2017, in U.S. dollars, following

(a) U.S. GAAP, and

(b) IFRS. 

Include schedules of any gain or loss on conversion.

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Cash.. Plant assets, net. Liabilities... Capital stock Sales revenue.. Out of pocket operating expenses. Depreciation expense.... January 1, 2017 Dr (Cr) December 31, 2017 Dr (Cr) LC125,000 LC10,000 40,000 35,000 (50,000) (50,000) (50,000) (200,000) 135,000 5,000 LC 0 LC 0