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1-Noy 31-Dec 20-Mar Spot Rates $0.820 $0.835 80.830 FV of Option $5,000 $4,200 Required: Prepare the journal entries required on the dates listed: 1. Assuming

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1-Noy 31-Dec 20-Mar Spot Rates $0.820 $0.835 80.830 FV of Option $5,000 $4,200 Required: Prepare the journal entries required on the dates listed: 1. Assuming that on 3/20/2018 the option was exercised, and the inventory delivered and paid 2. Assuming that the spot rate on 3/20/2018 is $0.845? Part V: A U.S. Company acquired a subsidiary company in London on January 1, 2017 by buying all of the subsidiary's common stock. The subsidiary nurchased the land for 300.000 pounds on November 22, 2013 and building for 450,000 pounds on July 1, 2017. The building is being depreciated over a 30-year life by the straight in method. The inventory is valued on a LIFO basis. The beginning inventory was 50,000 pounds. Purchase of invenit ry incurred evenly during the year. The British pound is the subsidiary's functional currency and its reporting currency and has not experienced any abnormal inflation. Exchange rates for the pound on various dates were: 11/22/2013 pound = $1.558 1/1/2017 1 pound - $1.585 7/1/2017 1 pound - 1 pound - $1.532 12/31/2017 pound $1.620 2017 average rate 1 pound = $1.570 Dividends declared 10/20/2017 pound = $1.610 The subsidiary's adjusted trial balance is presented below for the year ended December 31, 2017 Debits In Pounds Rates In U.S. S Cash 52.000 Accounts receivable 126.000 Inventory 35,000 Land 300,000 Building 450,000 Depreciation expense 7,500 Cost of goods sold 190,750 Other expenses 80,000 Dividends declared 10/20/2017 35,000 Total debits 1.276.250 Credits Accumulated depreciation 7,500 Accounts payable 225,000 Accrued liabilities 32.750 Common stock 100,000 Retained earnings 380,000 Sales revenue 531,000 Total credits Required: Prepare the subsidiary's 1,276,250 A Translated workpapers (round to the nearest dollar) B. Translated income statement C. Translated balance sheet Part VI: Using the information provided in Part V. use the temporal method instead of the current rate method Required: Prepare the subsidiary's: A. Translated workpapers (round to the nearest dollar) B. Translated income statement C. Translated balance sheet

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