Ency Trans and engaged Spor Rates $0.820 FV or Option $5,000 $4,200 Required: Prepare the journal entries required on the dates i 1. Assuming that on 3/20/2018 the option was exercised, and the inventory del 2. Assuming that the spot rate on 3/20/2018 is $0.8457 dates 1, 2017 by buying 2013 and the ny in London on Januaryds on November the straight-line Part V: A U.S. Company acquired a subsidiary company in bsidiary forced the land for 300,000 pred over a 30-year functional currency subsidiary's common stock. The subsidiary purchased the ay 1, 2017. The building is a tish pound is the sub for the pound on method. The inventory is valued on an average co subsidiary The building the British Exchans 0.5. Company acquired a subsidiary company in London on January 1, 2017 by buying all of the on stock. The subsidiary purchased the land for 300,000 pounds on November 22, 2013 and the on July 1, 2017. The building is being depreciated over a 30-year life by the straight-line ventory is valued on an average cost basis. The Rritish pound is the subsidiary's functional currency and its reporting currency and has not experienced any abnormal inflation. Exchange rates ormal inflation. Exchange rates for the pound on various 30 ed a se made rece redi red; on N dates were: 11/22/2013 1 pound $1.55 1/1/2017 1 pound - $1.58 7/1/2017 1 pound - $1.53 12/31/2017 1 pound $1.62 2017 average rate 1 pound = $1.57 Dividends declared 10/20/2017 1 pound $1.61 The subsidiary's adjusted trial balance is presented below for the year ended December 31, 2017. ar 52,000 Debits In Pounds Rates In U.S. S Cash Accounts receivable 126,000 Inventory 35,000 Land 300,000 Building 450,000 Depreciation expense 7,500 Cost of goods sold 190,750 Other expenses 80,000 Dividends declared 10/20/2017 35,000 Total debits 1,276,250 Credits Credits Accumulated depreciation 7,500 Accounts payable 225,000 Accrued liabilities 32,750 Common stock 100,000 Retained earnings 380,000 Sales revenue 531,000 Total credits 1,276,250 Required: Prepare the subsidiary's: A Translated workpapers (round to the nearest dollar) B. Translated income statement C. Translated balance sheet