Fenwicke Company organized and began operating a subsidiary in a foreign country on January 1, 2015, by investing LCU 84,000. This subsidiary immediately borrowed LCU 210,000 on a five-year note with 8 percent interest payable annually beginning on January 1, 2016. The subsidiary then purchased for LCU 294,000 a building that had a 10-year anticipated life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, the subsidiary rents the building for three years to a group of local doctors for LCU 7,200 per month. By year-end, payments totaling LCU 72,000 had been received. On October 1, LCU 4,600 was paid for a repair made on that date. The subsidiary transferred a cash dividend of LCU 6,100 back to Fenwicke on December 31, 2015. The functional currency for the subsidiary is the LCU. Currency exchange rates for 1 LCU follow:

January 1, 2015	$	2.10	=	1 LCU
October 1, 2015		1.80	=	1
Average for 2015		1.95	=	1
December 31, 2015		1.80	=	1

Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in LCU and then translate these amounts into U.S. dollars. (Amounts to be deducted should be indicated by a minus sign.)

Fenwick Company Subsidary

Income Statement

For Year ended December 31, 2015

	LCU	US DOLLARS

FENWICKE COMPANY SUBSIDIARY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31 ,2015
	LCU	US DOLLARS
RETAINED EARNINGS, 1/1
RETAINED EARNINGS, 12/31

FENWICKE COMPANY SUBSIDIARY
BALANCE SHEET
DECEMBER 31, 2015
	LCU	US DOLLARS
ASSETS
TOTAL ASSETS
LIABILITIES AND EQUITIES
TOTAL LIABILITIES AND EQUITIES