Cayce Corporation and Simbel Company Consolidated Financial Statements On January 1, 2014, Cayce Corporation acquired 100 percent of Simbel Company for consideration paid of $126,000, which was equal to its fair value of 504.000. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt Cayce accounts for its Investment in Simbel under the equity method. Any excess of fair value over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition Following are the January 1, 2014 financial statements for Cayce Corporation and Simbel Company before translation of Simbel's financial statements into US dollars. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively Simbel Company 390,000 Cash and receivables Inventory Prepaid expenses Investment in Simbel Fixed assets (net) Total assets Accounts payable Notes payable due in 2017 Cayce Corporation 105 244 CE 90.000 30,000 126.000 400.000 751244 60000 132.000 190.000 Prey 3 4 5 of 5 Next > Following are re January 1, 2014 inicidi Salernens tur cayce corporation and Silver Company vendre translation of Simbel's financial statements into U.S. dollars. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively. Cash and receivables Inventory Prepaid expenses Investment in Simbel Fixed assets (net) Total assets Accounts payable Notes payable - due in 2017 Common stock Additional pald-in capital Retained earings, 11/14 Total liabilities and equities Cayce Simbel Corporation Company $ 105,244 CE 390,000 90,000 30,000 126.000 400,000 751244 390,000 60.000 132.000 120,000 340.000 83.000 150.000 356 244 175.244 CE390.000 The exchange rate for E on January 1, 2014 was $0 250 per US dollar Cayce Corporation and Simbel Company Consolidated Financial Statement: Required: 751,244 60,000 751,244 60.000 132,000 132,000 120.000 Goodwill Total asset Accounts payable Notes payable Common stock Cayce Corporation Simbel Company Additional paid-in capit Cayce Corporation Simbel Company Retained earnings, 1 Cayce Corporation 5 Simbel Company Total liabilities an 83.000 356 244 751 244 3 4 5 of 5 i Next > Now