3. Multico, a US company forms a wholly owned subsidiary in Italy (Italco) on 31/12/20X0. On that date, Multico invests $1,350,000 in exchange for all of the subsidiary's capital stock. Italco purchased its inventory on 31/12/20X0 and its beginning balance sheet on 1 Jan 20X1 is as follows: DOTTIAC Liabilities and Equity Capital stock Assets Cash 400,000 Inventory 600,000 Relevant exchange rates for 20X1 are as follows: January 1, 20X1 1.35 Rate when PPE are acquired and long-term debt was incurred, Jan 15, X1 1.33 Rate when patent was acquired and capital was increased Feb 1, X1 1.32 Average for 20X1 Rate when dividends was declared. Dec 1. XI Average for the month of Dec Dec 31, 20X1 1.25 Required: Translate the Italy subsidiary's Einancial statements into USD using temporal method. 1,000,000 1.3 1.27 1.26