1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $143.100 Cayce is a U S-based company headquartered in Buffalo New- York, and undervalued land on Simbels books. Simbel had no retained eamings at the date of acquisition. Following are the 2017 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars (S) and Egyptian pounds (EE), respectively l 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 E 892,100 Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel S 232,000 (109,800) (23.000) (9,000) (27.000) 19,250 (468,100) 82,000) (50,000) 65,000) 50,000 EE 277,000 Gain on sale of building, 10/1/17 S 82.450 S 338,000 82.450 Retained earnings, 1/1/17 EE 149,000 277,000 Retained earnings, 12/31/17 Cash and receivables 376.450EE356,000 112800 E 168,000 341,000 Prepaid expenses Investment in Simbel (initial value) Property, plant & equipment (net) 100,000 30,000 143,100 947 9EE 984,000 Total assets Accounts payable Notes payable-due in 2020 Common stock Additional paid-in capital Retained earnings, 12/31/17 S 68,800 165,650 140,000 97.000 376.450 S 847.900 E 60,000 146,000 260,000 162,000 Total liabilities and equities CE 984,000