Bentley Company (a U.S. based company) established a subsidiary in India on January 1, Year 1, by investing 3,000,000 Indian Rupees (Rs) when the exchange rate was US$0.015/1 Rs. On that date, the foreign subsidiary borrowed Rs 5,000,000 from local banks on a 10-year note to finance the acquisition of plant and equipment. The subsidiarys opening balance sheet (in Rs) was as follows: Balance Sheet (January 1, Year 1) Cash 3,000,000 Long-term debt 5,000,000 Plant and equipment 5,000,000 Capital stock 3,000,000 Total 8,000,000 Total 8,000,000 During Year 1, the foreign subsidiary generated sales of Rs 10,000,000 and net income of Rs 1,100,000. Dividends in the amount of Rs 200,000 and 200,000 were paid to the parent on June 1 and December 1. Inventory was acquired evenly throughout the year, with ending inventory acquired on November 15, Year 1. The subsidiarys financial statements (in Rs) for the year ended December 31, Year 1 are as follows: Income Statement (Year 1) Rs. Sales 10,000,000 COGS (6,000,000) Gross Profit 4,000,000 Depreciation expense (500,000) Other operating expenses (1,500,000) Income before taxes 2,000,000 Income taxes (900,000) Net Income 1,100,000 Statement of Retained Earnings (Year 1) Rs. Retained earnings, 1/1/Year 1 0 Net Income 1,100,000 Dividends (400,000) Retained earnings, 12/31/Year1 700,000 BALANCE SHEET (December 31, Year 1) Rs. Cash 800,000 Receivables 1,500,000 Inventory 2,700,000 Plant and Equipment (net) 4,500,000 Total Assets 9,500,000 Accounts Payable 800,000 Long-term debt 5,000,000 Common Stock 3,000,000 Retained earnings, 12/31/Year 1 700,000 Total Liabilities and Stockholders equity 950,000 Relevant exchange rates for year 1 are as follows (US$ per Rs): January 1, Year 1..$0.015 June 1, Year 1.. 0.017 Average for Year 1.. 0.018 November 15, Year 1 0.020 December 1, Year 1.. 0.021 December 31, Year 1 0.022 Required: Translate the Indian subsidiarys financial statements (Income Statement, Retained Earnings statement, and Balance Sheet) into U.S. dollars, assuming that the Indian Rupee is the functional currency. Compute the translation adjustment by considering the impact of exchange rate changes on the subsidiarys net assets.