Complete the following requirements based on information given:

On January 1, 20x4, Alum Corporation whose presentation currency is dollar, acquired DaSilva Company, a Brazilian subsidiary, by purchasing all its common stock at book value. DaSilva Companys trial balance on January 1, 20x4 and December 31 20x4, expressed in Brazilian reals (BRL), follows: January 1, 20x4	December 31, 20x4
Debit	Credit	Debit	Credit
Cash	BRL 62,000	BRL 57,700
Accounts Receivable	83,900	82,000
Inventory	95,000	95,000
Prepaid Insurance	5,600	2,400
Plant and Equipment	250,000	350,000
Accumulated Depreciation	BRL 67,500	BRL 100,000
Intangible Assets	42,000	30,000
Accounts Payable	20,000	24,000
Income Taxes Payable	30,000	27,000
Interest Payable	1,000	1,100
Notes Payable	20,000	20,000
Bonds Payable	120,000	120,000
Common Stock	80,000	80,000
Additional Paid-in Capital	150,000	150,000
Retained Earnings	50,000
Sales	500,000
Cost of Goods Sold	230,000
Insurance Expense	3,200
Depreciation Expense	32,500
Amortization Expense	12,000
Operating Expense	152,300
Dividends Paid	25,000
Total	BRL 538,500	BRL 538,500	BRL 1,072,100	BRL 1,072,100

Additional information:

1. DaSilva uses FIFO inventory valuation. Purchases were made uniformly during 20x4. Ending inventory for 20x4 is composed of purchased when the exchange rate was $0.25.

2. The insurance premium for a two-year policy was paid on October 1, 20x3.

3. Plant and equipment were acquired as follows:

Date	Cost
January 1, 20x1	BRL 200,000
July 10, 20x2	50,000
April 7, 20x4	100,000

4. Plant and equipment are depreciated using the straight-line method and a 10-year life, with no residual value. A full months depreciation is taken in the month of acquisition.

5. The intangible assets are patents acquired on July 10, 20x2, at a cost of BRL 60,000. The estimated life is five years.

6. The common stock was issued on January 1, 20x1.

7. Dividends of BRL 10,000 were declared and paid on April 7 20x4. On October 9 20x4, BRL 15,000 of dividends were declared and paid.

8. All the expense items were reported in the trial balance. No other (tax) expenses omitted.

9. Exchange rates were as follows:

Date	BRL 1 = $
January 1, 20x1	0.45
July 10, 20x2	0.40
October 1, 20x3	0.34
January 1, 20x4	0.30
April 7, 20x4	0.28
October 9, 20x4	0.23
December 31, 20x4	0.20
20x4 Average	0.25

Required: (Follow the formats in lecture notes, clearly indicate the original amounts in BRL and the exchange rate for each item translated)

1. Assuming the real is the functional currency, prepare a schedule calculating the translation adjustments as of the end of 20x4. The net assets on January 1, 20x4 were BRL 280,000.

2. Continue with 1 above, prepare a schedule translating DaSilvas financial statements (Income Statement and Balance Sheet) for the year 20x4.