On January 1, 2023, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $126,000. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel’s books. Simbel had no retained earnings at the date of acquisition. The following are the 2024 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (£E), respectively.

Additional Information∙ During 2023, the first year of joint operation, Simbel reported income of £E 163,000 earned evenly throughout the year. Simbel declared a dividend of £E 30,000 to Cayce on June 1 of that year. Simbel also declared the 2024 dividend on June 1.∙ On December 9, 2024, Simbel classified a £E 10,000 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2025.∙ The exchange rates for 1 £E are as follows:

Translate Simbel’s 2024 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiary’s functional currency.

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Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/24 Net income Retained earnings, 1/1/24 Net income Dividends.. Retained earnings, 12/31/24 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets. Accounts payable Notes payable-due in 2027 Common stock Additional paid-in capital Retained earnings, 12/31/24 Total liabilities and equities Cayce Corporation $200,000 (93,800) (19,000) (7,000) (21,000) 13,750 $ 72,950 $318,000 72,950 (24,000) $366,950 $110,750 98,000 30,000 126,000 398,000 $762,750 $ 60,800 132,000 120,000 83,000 366,950 $762,750 Simbel Company £E 800,000 (420,000) (74,000) (46,000) (59,000) -0- 30,000 £E 231,000 £E 133,000 231,000 (50,000) £E 314,000 £E 146,000 297,000 -0- 455,000 £E 898,000 £E 54,000 140,000 240,000 150,000 314,000 £E 898,000