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Boston Company organized and began operating a subsidiary in a foreign country on January 1, 2015, by Investing LCU 74,000. This subsidiary Immediately borrowed LCU 185,000 on a five-year note with 9 percent interest payable annually beginning on January 1, 2016. The subsidiary then purchased for LCU 259,000 a building that had a 10-year anticipated life and no salvage value and is to be depreciated using the straight- line method. Also on January 1, the subsidiary rents the building for three years to a group of local doctors for LCU 6,000 per month. By year-end, payments totaling LCU 60,000 had been received. On October 1, LCU 4,100 was paid for a repair made on that date. The subsidiary transferred a cash dividend of LCU 5,600 back to Boston on December 31, 2015. The functional currency for the subsidiary is the LCU. Currency exchange rates for 1LCU follow: January 1, 2015 2.60 =1LCU 2.45 = 1 October 1, 2015 2.50-1 Average for 2015 December 31, 2015 2.40 = 1 BOSTON COMPANY SUBSIDIARY Income Statement For the Year Ended December 31, 2015 LCU U.S. Dollars 0 $ 0 BOSTON COMPANY SUBSIDIARY Statement of Retained Earnings For the Year Ended December 31, 2015 LCU U.S. Dollars Retained earnings, 1/1 Retained earnings, 12/31 0 $ 0 BOSTON COMPANY SUBSIDIARY Balance Sheet December 31, 2015 U.S. LCU Dollars Assets: 0 $ 0 Total assets Liabilities and Equities: Total liabilities and equities 0 $ 0 Boston Company organized and began operating a subsidiary in a foreign country on January 1, 2015, by Investing LCU 74,000. This subsidiary Immediately borrowed LCU 185,000 on a five-year note with 9 percent interest payable annually beginning on January 1, 2016. The subsidiary then purchased for LCU 259,000 a building that had a 10-year anticipated life and no salvage value and is to be depreciated using the straight- line method. Also on January 1, the subsidiary rents the building for three years to a group of local doctors for LCU 6,000 per month. By year-end, payments totaling LCU 60,000 had been received. On October 1, LCU 4,100 was paid for a repair made on that date. The subsidiary transferred a cash dividend of LCU 5,600 back to Boston on December 31, 2015. The functional currency for the subsidiary is the LCU. Currency exchange rates for 1LCU follow: January 1, 2015 2.60 =1LCU 2.45 = 1 October 1, 2015 2.50-1 Average for 2015 December 31, 2015 2.40 = 1 BOSTON COMPANY SUBSIDIARY Income Statement For the Year Ended December 31, 2015 LCU U.S. Dollars 0 $ 0 BOSTON COMPANY SUBSIDIARY Statement of Retained Earnings For the Year Ended December 31, 2015 LCU U.S. Dollars Retained earnings, 1/1 Retained earnings, 12/31 0 $ 0 BOSTON COMPANY SUBSIDIARY Balance Sheet December 31, 2015 U.S. LCU Dollars Assets: 0 $ 0 Total assets Liabilities and Equities: Total liabilities and equities 0 $ 0