Fart !!1! Foreign Currency Accounting Facts : Ferent Co. = 4.5 firm , paid $ 525. OOD cash to acquire El at the Stock of the British Sub to when the book Value of Sub' = net BEZEL WEE Equal to fair Value . ThiE QUEINZEE\\ combination occurred on December _ _, COLE. When the Exchange rate for Enitish poundE " $1.50. During 2017 the British pound weakEnEd against the U.S. dollar, resulting in a year End Current Exchange rate at= _. 40. Average Exchang = rates for COLT HERE =1. 45. Sub LO paid & EGO. Odd dividend to Ferent Co on December 1 . 2017 when the exchang = ray WEE = 1. 4 2 per British pound . The only intercompany transaction between the Time WEE E` { BLOOD LESS, OOD! noninterest - bearing advance by Sub CO to Parent Lo that Occurred on January 4, JOLT when the Exchange rate WEE Still $ 1.50 . The advance is denominated in Ly dolars. Sub CO'S functional Currency is British pounds, =Q the advance to Ferent Lois E foreign Currency trareaction from Sub LO E Perspective , but not to Parent LO DECELE= it is denominated in U.S. callers . Sub CO'= EFFETE liabilities and stockholder' = Equity' at acquisition were = = follows: British Exchang 4 . 5 . Pounds = RATE Dollars HEEE - 5 $ 1. 50 : 210. 000 HEE - Accounts receivable 40,00 0 1. 50 50, 000 Inventory 120, 00 0 1. 50 160. 000 Fant ZEZETE 100, 000 150, 000 LEE=_ Accumulated depreciation - 20,000 1. 50 - 30.000 Total BEEZTE = 570.0 00 Liabilities & Stockholder' = Equity Accounts payable 230. 00 0 $ 1.50 $ 45,0 00 Eand= payable 100, 000 150, 000 Common Stock 200, 000 1 50 200.000 Retained Earnings 50.000 1.501 75.000 Total liabilities & stockholder' = Equity 5 570.000 Sub CO adjusted its advance to Parent Co at year- End 2017 to reflect the 5 1. 40 current Exchange rate. Sub Co recorded an Exchange gain because there End Evidence that the advance is Of = long-term investment nature . The Entry recorded on Sub CO'S COOKE WEE HI Advance to parent $ 4,000 Exchange gain TO sQUE recENviable DEnominated in US dollars Required; In the Excel file" Case 1 - Advanced accounting topics" End the worksheet "Foreign Currency" you will find Sub CO'S EdjustEd trial balance Et December 21, 2017 in British pounds . FLEECE prepare the following }