Case 3 (7 points) Elmhurst Corporation, a U.S.-based company, acquired a 100 percent interest in Sawasdee Company in Bangkok, Thailand, on January 1, 2019. The financial statements of Swasdee Company as of December 31, 2020, are as follows: Statements of financial positions As of December 31, 2020 Assets: THB Cash 1,000,000 Account receivables.net 1,650,000 Inventory 4,250,000 Equipment 12,500,000 Less: Accumulated depreciation (4,250,000) Vehicle 36,000,000 Less: Accumulated depreciation (15,150,000) Other non-current assets 3,000,000 Total assets 39,000,000 Liabilities' and shareholders' equity THB Account payables 1,250,000 Long term debt 25,000,000 Common stock 2,500,000 Preference stock 7,500,000 Retained earnings 2,750,000 Total Liabilities' and shareholders' 39,000,000 equity Income statement For the period ending December 31, 2020. THB Sales Cost of goods sold Depreciation expense -equipment Depreciation expense-vehicle Research and development cost Other expense (Including taxes) Net income 12,500,000 (6,000,000) (1,250,000) (900,000) (600,000) (500,000) 3,250,000 Additional information: 1. The beginning inventory of THB 3,000,000 was acquired on December 15, 2019, when the exchange rate was THB 30.15. Purchases of inventory during 2020 were acquired uniformly throughout the year. The December 31, 2020, ending inventory of THB 4,250,000 was acquired evenly throughout the fourth quarter of 2020 when the exchange rate was THB 30.16. 2. All fixed assets were on the books when the subsidiary was acquired except for THB 2,500,000 of equipment which was acquired on January 3, 2020 when the exchange rate was THB 31.8 and THB 6,000,000 in vehicle which was acquired on August 5, 2020 when the exchange rate was THB 32.10. Equipment is depreciated on a straight-line basis over 10 years. Vehicle are depreciated on a straight-line basis over 10 years. Assume: A full year's depreciation is taken in the year of acquisition. 3. Dividends were declared and paid on December 15, 2020, when the exchange rate was THB 32.15. Exchange rate Date January 1, 2019 January 1, 2020 Average rate year 2020 December 31, 2020 30.00 30.10 32.20 32.50 Required: Translate Swasdee's financial statements into U.S. dollars in accordance with U.S. GAAP at December 31, 2020: Assuming the U.S. dollar is the functional currency. (The December 31, 2019, retained earnings that appeared in Swoboda's remeasured financial statements was $8,333.) (Using temporal method)