Dieckmann Company, a U$.$S$.-$based company, acquired a $100$ percent interest in Rakona A$.$S$.$ in the Czech Republic on January $1,2023,$ when the exchange rate for the Czech koruna $($K$$s$)$ was $$0\mathrm{.}05.$ Rakona$$s financial statements as of December $31,2024,$ two years later, follow:

Balance Sheet

December $31,2024$

Assets

Cash K$$s $2,000,000$

Accounts receivable $($net$)3,300,000$

Inventory $8,500,000$

Equipment $25,000,000$

Less: Accumulated depreciation $(8,500,000)$

Buildings $72,000,000$

Less: Accumulated depreciation $(30,300,000)$

Land $6,000,000$

Total assets K$$s $78,000,000$

Liabilities and Stockholders$$ Equity

Accounts payable K$$s $2,500,000$

Long$-$term debt $50,000,000$

Common stock $5,000,000$

Additional paid$-$in capital $15,000,000$

Retained earnings $5,500,000$

Total liabilities and stockholders$$ equity K$$s $78,000,000$

Income Statement

For Year Ending December $31,2024$

Sales K$$s $25,000,000$

Cost of goods sold $(12,000,000)$

Depreciation expense$$equipment $(2,500,000)$

Depreciation expense$$buildings $(1,800,000)$

Research and development expense $(1,200,000)$

Other expenses $($including taxes$)(1,000,000)$

Net income K$$s $6,500,000$

Plus: Retained earnings, $1/1/24500,000$

Less: Dividends, $2024(1,500,000)$

Retained earnings, $12/31/24$ K$$s $5,500,000$

Additional Information

The January $1,2024,$ beginning inventory of K$$s $6,000,000$ was acquired on December $18,2023,$ when the exchange rate was $$0\mathrm{.}043.$ Purchases of inventory were acquired uniformly during $2024.$ The December $31,2024,$ ending inventory of K$$s $8,500,000$ was acquired in the latter part of $2024$ when the exchange rate was $$0\mathrm{.}032.$ All depreciable assets $($equipment and buildings$)$ were on the books when the subsidiary was acquired$$except for K$$s $5,000,000$ of equipment acquired on January $3,2024,$ when the exchange rate was $$0\mathrm{.}036,$ and K$$s $12,000,000$ in buildings acquired on March $5,2024,$ when the exchange rate was $$0\mathrm{.}034.$ Straight$-$line depreciation is $10$ years for equipment and $40$ years for buildings. A full year$$s depreciation is taken in the year of acquisition.

Dividends were declared and paid on December $15,2024,$ when the exchange rate was $$0\mathrm{.}031.$

Other exchange rates for $1$ K$$s follow:

January $1,2024$ $ $0\mathrm{.}040$

Weighted average rate for $20240\mathrm{.}035$

December $31,20240\mathrm{.}030$

Required:

Translate the Czech koruna financial statements on December $31,2024,$ in the following three situations:

The Czech koruna is the functional currency. The December $31,2023,$ U$.$S$.$ dollar$$translated balance sheet reported retained earnings of $$22,500.$ The December $31,2023,$ cumulative translation adjustment was negative $$202,500($debit balance$).$

The U$.$S$.$ dollar is the functional currency. The December $31,2023,$ U$.$S$.$ dollar$$remeasured balance sheet reported retained earnings $($including a $2023$ remeasurement gain$)$ of $$353,000.$

The U$.$S$.$ dollar is the functional currency. Rakona has no long$-$term debt. Instead, it has common stock of K$$s $20,000,000$ and additional paid$-$in capital of K$$s $50,000,000.$ The December $31,2023,$ U$.$S$.$ dollar$$remeasured balance sheet reported a negative balance in retained earnings of $$147,000($including a $2023$ remeasurement loss$).$