Diekmann Company, a U.S.-based company, acquired a 100 percent interest in Rakona A.S. in the Czech Republic on January 1, 2019, when the exchange rate for the Czech koruna (Ks) was $0.05. Rakonas financial statements as of December 31, 2020, two years later, follow:

Balance Sheet December 31, 2020
Assets
Cash	Ks	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	Ks	78,000,000
Liabilities and Stockholders Equity
Accounts payable	Ks	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	Ks	78,000,000

Income Statement For Year Ending December 31, 2020
Sales	Ks	25,000,000
Cost of goods sold		(12,000,000	)
Depreciation expenseequipment		(2,500,000	)
Depreciation expensebuildings		(1,800,000	)
Research and development expense		(1,200,000	)
Other expenses (including taxes)		(1,000,000	)
Net income	Ks	6,500,000
Plus: Retained earnings, 1/1/20		500,000
Less: Dividends, 2020		(1,500,000	)
Retained earnings, 12/31/20	Ks	5,500,000

Additional Information

• The January 1, 2020, beginning inventory of Ks 6,000,000 was acquired on December 18, 2019, when the exchange rate was $0.043. Purchases of inventory were acquired uniformly during 2020. The December 31, 2020, ending inventory of Ks 8,500,000 was acquired in the latter part of 2020 when the exchange rate was $0.032. All depreciable assets (equipment and buildings) were on the books when the subsidiary was acquiredexcept for Ks 5,000,000 of equipment acquired on January 3, 2020, when the exchange rate was $0.036, and Ks 12,000,000 in buildings acquired on March 5, 2020, when the exchange rate was $0.034. Straight-line depreciation is 10 years for equipment and 40 years for buildings. A full years depreciation is taken in the year of acquisition.

• Dividends were declared and paid on December 15, 2020, when the exchange rate was $0.031.

• Other exchange rates for 1 Ks follow:

  January 1, 2020	$	0.040
  Average 2020		0.035
  December 31, 2020		0.030

  Translate the Czech koruna financial statements at December 31, 2020 assuming the U.S. dollar is the functional currency. The December 31, 2019, U.S. dollarremeasured balance sheet reported retained earnings (including a 2019 remeasurement gain) of $353,000. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)

  	US$
  Income Statement:
  Sales
  Income before remeasurement gain	0
  Remeasurement gain, 2020
  	0
  	0
  Balance Sheet:
  Assets:
  Total assets	0
  Liabilities and Stockholders Equity
  Total liabilities and stockholders equity