CRANE GRAINS

Comparative Balance Sheets

January $1$ and December $31,2024$ The account balances are computed in conformity with U$.$S$.$ generally accepted accounting standards.

Other information is as follows:

Direct exchange rates for the New Zealand dollar on various dates were:

Crane Grains purchased additional equipment for $108,000$ New Zealand dollars on July $1,2024,$ by issuing a note for $81,000$ New Zealand dollars and paying the

balance in cash. The account balances are computed in conformity with U$.$S$.$ generally accepted accounting standards.

Other information is as follows:

Direct exchange rates for the New Zealand dollar on various dates were:

Crane Grains purchased additional equipment for $108,000$ New Zealand dollars on July $1,2024,$ by issuing a note for $81,000$ New Zealand dollars and paying the

balance in cash.On January $1,2024,$ a U$.$S$.$ company purchased $100\%$ of the outstanding stock of Crane Grains, a company located in Latz City, New Zealand. Crane Grains was Sales were made and purchases and "Other Expenses" were incurred evenly throughout the year.

Depreciation for the period in New Zealand dollars was computed as follows:

The inventory is valued on a FIFO basis. The beginning inventory was acquired when the exchange rate was $$0\mathrm{.}7480.$ The ending inventory was acquired during

the last four months of $2024.$

Dividends of $26,500$ New Zealand dollars were paid on July $1$ and December $31.$The account balances are computed in conformity with U$.$S$.$ generally accepted accounting standards.

Other information is as follows:

Direct exchange rates for the New Zealand dollar on various dates were:

Crane Grains purchased additional equipment for $108,000$ New Zealand dollars on July $1,2024,$ by issuing a note for $81,000$ New Zealand dollars and paying the

balance in cash.Prepare a schedule to verify the translation adjustment determined in part a$.$ Describe how the translation adjustment would be reported in the financial

statements. $($Round answers to $0$ decimal places, e$.$g$.5,125.$ Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e$.$g$.$

$-2,945$ or parentheses e$.$g$.(2,945).)$ On January $1,2024,$ a U$.$S$.$ company purchased $100\%$ of the outstanding stock of Crane Grains, a company located in Latz City, New Zealand. Crane Grains was

organized on January $1,2005.$ All the property, plant, and equipment held on January $1,2024,$ was acquired when the company was organized. The business

combination was accounted for as a purchase transaction. The $2024$ financial statements for Crane Grains, prepared in its local currency, the New Zealand dollar, a

given here.

Long$-$Term Notes $(606,000$ issued

September $1,2016,81,000$ issued

organized on January $1,2005.$ All the property, plant, and equipment held on January $1,2024,$ was acquired when the company was organized. The business

combination was accounted for as a purchase transaction. The $2024$ inancial statements for Crane Grains, prepared in its local currency, the New Zealand dollar, are

given here.