36. On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $126,000. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively. Sales Cost of goods sold Salary expense Cayce Corporation $ 200,000 (93,800) Simbel Company E 800,000 (420,000) (19,000) (74,000) (7,000) (46,000) (21,000) (59,000) 13,750 -0- Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/20 Net income Retained earnings, 1/1/20 Net income -0- $ 72,950 $318,000 72,950 (24,000) Dividends Retained earnings, 12/31/20 $ 366,950 Cash and receivables $ 110,750 Inventory 98,000 Prepaid expenses 30,000 30,000 E 231,000 E 133,000 231,000 (50,000) E 314,000 E 146,000 297,000 Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock .. Additional paid-in capital Retained earnings, 12/31/20 Total liabilities and equities 126,000 398,000 $ 762,750 $ 60,800 132,000 120,000 83,000 366,950 $ 762,750 -0- -0- 455,000 E 898,000 E 54,000 140,000 240,000 150,000 314,000 E 898,000