Dorsey Corporation purchased 90% of the common stock of Lansing Company on January 1, 2008. The cost of the investment was equal to the book value interest acquired. Lansing Company operates two retail stores and an exporting business in London that specializes in buying and selling British tweeds. The subsidiary provided the following financial statements in pounds to the parent company:

Lansing Company was incorporated on January 1, 2006, at which time all the property, plant, and equipment was purchased. The long-term notes were issued to partially finance the purchase of the fixed assets.

Direct exchange rates for the British pound are as follows:January 1, 2006 ................................................ ?$1.8996January 1, 2008 ................................................ ? ?1.8365Average for the last quarter 2018 ................. ? ?1.5300January 1, 2019 ................................................ ? ?1.4919December 31, 2019 ......................................... ? ?1.4730Average for 2019 ............................................. ? ?1.4788Average for August?December 2019 ............ ? ?1.4950

The January 1, 2019, retained earnings balance of Lansing in dollars was $1,593,408, and the cumulative translation adjustment was a debit balance of $939,898. The beginning inventory of ?420,000 was acquired during the last quarter of 2018 and the ending inventory was acquired during the last five months of 2019. Sales were made and purchases and other expenses were incurred evenly during the year.

Required:

Translate the December 31, 2019, account balances of Lansin

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LANSING COMPANY Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Sales 2,900,000 (1,400,000) Cost of Goods Sold Depreciation Expense (300,000) Other Expenses (400,000) Net Income 800,000 1/1 Retained Earnings 900,000 1,700,000 Less: Dividends Declared and Paid, December 31 (325,000) 12/31 Retained Earnings 1,375,000 LANSING COMPANY Balance Sheet December 31, 2014 Cash and Receivables 1,275,000 Merchandise Inventory 490,000 Property, Plant, and Equipment 3,450,000 Total 5,215,000 640,000 Current Liabilities Long-Term Notes Payable 1,200,000 Capital Stock 2,000,000 Retained Earnings 1,375,000 Total 5,215,000