AaBbCcDdEe AaBbCcDdE AaBbCcD, A NormalNo Spacing Heading 1 Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2013 by acquiring all of the common stock for 50.000 Stickles, the local currency. This subsidiary immediately borrowed 120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2014 . A building was then purchased for 170,000 on January 1, 2013, This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was immediately rented for three years to a group of local doctors for 56,000 per month. By year-end, payments totaling 60,000 had been received. On October 1, $5,000 were paid for a repair made on that date and it was the only transaction of this kind for the year. A cash dividend of 6,000 was transferred back to Gino! on December 31, 2013. The functional currency for the subsidiary was the Stickle ($) Currency exchange rates were as follows: January 1, 2013 October 1,2013 Average for 2013 December 31,2013 $1 = S2.40 1-S2.22 51-s2.28 $1 =S2.16 Prepare an income statement for this subsidiary in stickles and then translate these amounts into U.S. dollars. Ginvold Co. Subsidiary Income Statement For the Year Ended December 31, 2013 Stickles Rate 72,000 xS2.28 A S 164,160 ( 12,000) x$2.28 A ( 27,360) ( 17,000) xS2.2S A = ( 38,760) ( 5,000) xS2.22 H = ( 11,100) U.S. Dollars Rent revenue Interest expense Depreciation expense Repair expense Net income 38.000 S 86,940 My Q is how did we get stickles