Gramado Company was created as a wholly owned subsidiary of Porto Alegre Corporation (a US-based company) on January 1, Year 1. On that date, Porto Alegre invested $42.000 in Grapade's capital stock Given the exchange rate on that date of $0.84 per cruzeiro, the inital investment of $42,000 was converted into 50,000 cruzeiros (C). Gramado's curice denominated opening Balance Sheet are as follows: Balance Sheet as of January 1, 2021 Casli Blant and equipment Total Long term debt Capital stocks Total Cz 50,000 300,000 350.000 300 000 SO 000 350.000 Gramado's cruzeiro-denominated financial statements for the year ended December 31 2021 are as follows Income Statement for the Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses ncome before Income taxes Net income C2 $40.000 (310.000) 230.000 (109.000) 122.000 (40000) 82.000 During 2021, dividends in the amount of C220,000 were paid to the parent on December 1, Inventory was acquired evenly throughout the year with ending inventory acquired on December 1, 2021 Statement of Retained Earnings for the Year Ended December 31, 2021 CZ Related coming, 11 2021 Net income Dividends Retained earnings 31/12/2011 82.000 (20,000) 62.000 Balance Sheet as at December 31, 2021 Recevable Cuveeley Plant and equipment (net) Total assets CZ 50.000 100,000 32.000 230.000 412.000 Lont-term debit Common stock Retained earnings 12/31/2021 Total liabilities and stockholders' equity 300 000 50.000 62 000 412,000 The Guzejs is the primary currency that Gourdouses in its day-to-day operations. The Cruzeiro has steadily talen in value against the dollar since Porto Alegre made the investment in Graciado on January 1, 2021. Relevant US dollar ($) exchange rates for the Cruzeiro for 2021 are as follows Average for 2020 $ 0.80 January 1, 2021 0.94 Average for 2021 072 December 1, 2021 071 December 31, 2021 070 REQUIRED: a) Translate Gramado Company's 2021 financial statements into U.S. dollars, a b) Compute the translation adjustment by considering the impact of exchange rate changes on subsidiary's net income