Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2007 by acquiring all of the common stock for 50,000. This subsidiary immediately borrowed 120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2008. A building was then purchased for 170,000. This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was rented for three years to a group of local doctors for 6,000 per month. By year-end, payments totaling 60,000 had been made. On October 1, 5,000 was paid for a repair made on that date. A cash dividend of 6,000 was transferred back to Ginvold on December 31, 2007. The functional currency for the subsidiary was the stickle. Currency exchange rates were as follows: 1 = January 1, 2007 $2.40 October 1, 2007 $2.22 December 31, 2007 $2.16 2007 Average $2.28 PART A Stickles Rate Dollars Income Rent revenue 72,000 Interest expense (12,000) Depreciation expense (17,000) Repair expense (5,000) Net income 38,000 Retained Earnings Beginning 0 Net income 38,000 Dividend (6,000) Ending 32,000 Balance Sheet Cash 49,000 Accounts receivable 12,000 Building 170,000 Accumulated depreciation (17,000) Total assets 214,000 Interest payable 12,000 Note payable 120,000 Common stock 50,000 Retained earnings 32,000 Translation adjustment Total liabilities and equities 214,000 Required: A. Translate the financial statements above. B. If the functional currency was dollars ($), recompute the financial statements