Assignment: current method You work for an American company that has a branch in Italy. The functional currency of the subsidiary is Euro. The company's total assets and total liabilities as at 31 December 2017 are EUR 200 million and EUR 140 million. Common stock is worth EUR 20 million (equivalent to USD 25 million when it was raised) and the rest represents retained earnings. USD equivalent balance of retained earnings was USD 32 million last year. Net income for the year is EUR 15 million which is earned equally throughout the year. Average exchange rate that prevailed over the year was 0.82/S and the closing exchange rate is 0.85/$ Translate all listed accounts using the Current method Item Euro in millions Exchange Rate USD in millions Calculation Assets 200 Liabilities 140 Common Stock 20 Retained Earnings 40 Foreign exchange reserve 0 Total liabilities plus equity 200 Net income 15