Assuming the FC is Tobac's functional currency, translate Tobac's trial balance, and prepare a consolidating worksheet. (Include all details or steps please).

1.94 ... 1.95 2015 Average. 2013 Average......... 2.05 November 30, 2015............. 1.94 December 31, 2015................ 1.93 Prepare the translated trial balance for DaLuca and prepare all of the elimination and adjusting entries necessary to prepare consolidated financial statements. Assume that Campione uses the simple equity method. Problem 11-8 (LO 3, 5) Translate a trial balance and prepare a consolidation work- sheet. Useful comparison with Problem 11-9. Balfour Corporation acquired 100% of Tobac, Inc., a foreign corporation, for 33,000,000 FC. The acquisition, which was accounted for as a purchase, occurred on July 1, 2015, when Tobac's equity, in FC, was as follows: 19,000,000 FC Common stock. ........ 8,480,000 Paid-in capital in excess of par ................ 2,520,000 Retained earnings ......... Any excess of cost over book value is traceable to equipment which is to be depreciated over 10 years. Balfour uses the simple equity method to account for its investment in Tobac. On April 1, 2017. Tobac acquired additional equipment costing 4,000,000 FC. Equipmen is depreciated by the straight line method over 10 years. No other equipment had been acquired or disposed of since 2014. Tobac employs the LIFO inventory method. Ending inventoryan December 31, 2017, consists of the following Acquired in the first quarter of 2014..... . 1,000,000 FC Acquired in the first quarter of 2015... 500,000 Acquired in the first quarter of 2017 6,500,000 The cost of sales is traceable to goods purchased during 2017 as follows: Acquired uniformly over the last months..... 23,400,000 FC Acquired in the first quarter... 4,200,000 Other expenses were incurred evenly over the year. On April 1, 2017. Tobac borrowed $1,280,000 from the parent company in order to finance the purchase of equipment. The note is duae in one year and bears interest at a tale of 8%. Principal and interest amounts are due to the parent in dollars. Various spot rates are as follows: 1 FC First quarter, 2014 average ........ $0.46 December 31, 2016.............. 2014 Av 0.49 First quarter, 2017 average .. .. January 1, 2015..... 0.51 April 1, 2017 First quarter, 2015 average 0.53 2017 Average................. July 1, 2015 Last months, 2017 average ...... December 31, 2015 0.58 December 31, 2017 Last months, 2015 average. 2016 Average 0.58 The December 31, 2017, trial balances for Tobac and Balfour are as follows: 11C $0.60 0.62 0.64 0.67 066 0.55 0.65 0.57 Toboc, Cash Net Accounts Receivable Balfour Corporation $ 4,463,200 15,350,000 16,300,000 1,356,800 23,712,363 68,000,000 (42,000,000] 3,087,385 FC 12,000,000 8,000,000 Due to Tobec Investment in Tobod See Note A Depreciablo Asia Accumulated Depreciation. Deto Bolo Other Liables Common Stock Paid In Capital in Excess of Par Volve Retained EominguJanuary 1, 2017 Sales Cost of Sales Depreciation Expense..... Interest Expense on Bollur Loon faccrued on December 31, 2017)-See None B Becharge Gein on Belfout loon See Nors Other Expenses Interest Income Subsidiary Income Totals (27,000,000 (35,000,000 12,000,000) 14,500,000 198,000,000 64,000,000 8,076,800 34,000,000 [12,300,000 12,087,385 (3.700.000 119,000,000) 18,480.000) 7.520.000) $40.000.000 27.600.000 3,300,000 118,154 (30,789 5.012,615 10,000,000 76,800) (2.682,363) Chapter 11 TRANSLATION OF FOREIGN FINANCIAL STATEMENTS Note A Balfour's investment in Tobac consists of the following: Initial investment (33,000,000 FC $0.55) . $18,150,000 Last 6 months, 2015 income (2,000,000 FC x $0.57) ........ 1,140,000 2016 Income (3,000,000 FC x $0.58). 1,740,000 2017 Income......... 2,682,363 Balance ......... $23,712,363 Note B-The original loan from Balfour was 2,000,000 FC, or $1,280,000 (2,000,000 FC x $0.64). On December 31, 2017, it would require 1,969,231 FC ($1,280,000+ $0.65) to settle the loan. This represents an exchange sain of 30,769 FC (2,000,000 FC -1.969,231 FC). The year-end balance due to Balfour is determined as follows: Principal balance.... 1,969,231 FC 118,154 Accrued interest ($1,280,000 x 8% x 9/12 + $0.65) ... 2,087,385 FC Balance .... The interest is accrued at year-end: therefore, interest expense should be translated at the year-end rate. Assuming the FC is Tobac's functional currency, translate Tobac's trial balance, and prepare a consolidating worksheet. ** Required luoromeasure 1.94 ... 1.95 2015 Average. 2013 Average......... 2.05 November 30, 2015............. 1.94 December 31, 2015................ 1.93 Prepare the translated trial balance for DaLuca and prepare all of the elimination and adjusting entries necessary to prepare consolidated financial statements. Assume that Campione uses the simple equity method. Problem 11-8 (LO 3, 5) Translate a trial balance and prepare a consolidation work- sheet. Useful comparison with Problem 11-9. Balfour Corporation acquired 100% of Tobac, Inc., a foreign corporation, for 33,000,000 FC. The acquisition, which was accounted for as a purchase, occurred on July 1, 2015, when Tobac's equity, in FC, was as follows: 19,000,000 FC Common stock. ........ 8,480,000 Paid-in capital in excess of par ................ 2,520,000 Retained earnings ......... Any excess of cost over book value is traceable to equipment which is to be depreciated over 10 years. Balfour uses the simple equity method to account for its investment in Tobac. On April 1, 2017. Tobac acquired additional equipment costing 4,000,000 FC. Equipmen is depreciated by the straight line method over 10 years. No other equipment had been acquired or disposed of since 2014. Tobac employs the LIFO inventory method. Ending inventoryan December 31, 2017, consists of the following Acquired in the first quarter of 2014..... . 1,000,000 FC Acquired in the first quarter of 2015... 500,000 Acquired in the first quarter of 2017 6,500,000 The cost of sales is traceable to goods purchased during 2017 as follows: Acquired uniformly over the last months..... 23,400,000 FC Acquired in the first quarter... 4,200,000 Other expenses were incurred evenly over the year. On April 1, 2017. Tobac borrowed $1,280,000 from the parent company in order to finance the purchase of equipment. The note is duae in one year and bears interest at a tale of 8%. Principal and interest amounts are due to the parent in dollars. Various spot rates are as follows: 1 FC First quarter, 2014 average ........ $0.46 December 31, 2016.............. 2014 Av 0.49 First quarter, 2017 average .. .. January 1, 2015..... 0.51 April 1, 2017 First quarter, 2015 average 0.53 2017 Average................. July 1, 2015 Last months, 2017 average ...... December 31, 2015 0.58 December 31, 2017 Last months, 2015 average. 2016 Average 0.58 The December 31, 2017, trial balances for Tobac and Balfour are as follows: 11C $0.60 0.62 0.64 0.67 066 0.55 0.65 0.57 Toboc, Cash Net Accounts Receivable Balfour Corporation $ 4,463,200 15,350,000 16,300,000 1,356,800 23,712,363 68,000,000 (42,000,000] 3,087,385 FC 12,000,000 8,000,000 Due to Tobec Investment in Tobod See Note A Depreciablo Asia Accumulated Depreciation. Deto Bolo Other Liables Common Stock Paid In Capital in Excess of Par Volve Retained EominguJanuary 1, 2017 Sales Cost of Sales Depreciation Expense..... Interest Expense on Bollur Loon faccrued on December 31, 2017)-See None B Becharge Gein on Belfout loon See Nors Other Expenses Interest Income Subsidiary Income Totals (27,000,000 (35,000,000 12,000,000) 14,500,000 198,000,000 64,000,000 8,076,800 34,000,000 [12,300,000 12,087,385 (3.700.000 119,000,000) 18,480.000) 7.520.000) $40.000.000 27.600.000 3,300,000 118,154 (30,789 5.012,615 10,000,000 76,800) (2.682,363) Chapter 11 TRANSLATION OF FOREIGN FINANCIAL STATEMENTS Note A Balfour's investment in Tobac consists of the following: Initial investment (33,000,000 FC $0.55) . $18,150,000 Last 6 months, 2015 income (2,000,000 FC x $0.57) ........ 1,140,000 2016 Income (3,000,000 FC x $0.58). 1,740,000 2017 Income......... 2,682,363 Balance ......... $23,712,363 Note B-The original loan from Balfour was 2,000,000 FC, or $1,280,000 (2,000,000 FC x $0.64). On December 31, 2017, it would require 1,969,231 FC ($1,280,000+ $0.65) to settle the loan. This represents an exchange sain of 30,769 FC (2,000,000 FC -1.969,231 FC). The year-end balance due to Balfour is determined as follows: Principal balance.... 1,969,231 FC 118,154 Accrued interest ($1,280,000 x 8% x 9/12 + $0.65) ... 2,087,385 FC Balance .... The interest is accrued at year-end: therefore, interest expense should be translated at the year-end rate. Assuming the FC is Tobac's functional currency, translate Tobac's trial balance, and prepare a consolidating worksheet. ** Required luoromeasure