Help System Announcements CALCULATOR PRINTER VERSION BACK NET Exercise 13-7 Dorsey Corporation purchased 90% of the common stock of Lansing Company on January 1, 2008. The cost of the investment was equal to the book value interest acquired. Lansing Company operates two retail stores and an exporting business in London that specializes in buying and selling British tweeds. The subsidiary provided the following financial statements in pounds to the parent company LANSING COMPANY Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Sales 3,030,000 Cost of Goods Sold (1,360,000) Depreciation Expense (314,000) Other Expenses (427,000 Net Income 929,000 1/1 Retained Earnings 820,000 1,749,000 Less: Dividends Declared and Paid, December 31 (303,000) 12/31 Retained Earnings 1,446,000 LANSING COMPANY Balance Sheet December 31, 2014 Cash and Receivables 1,220,000 Inventory 488,000 Property. Plant, and Equipment 3,440,000 Total 5,148.000 Current Liabilities 552,000 Long-Term Notes Payable 1,320,000 Common Stock 1.830,000 Retained Earnings 1,446,000 Total 5,148,000 Lansing Company was incorporated on January 1, 2006, at which time all the property, plant, and equipment was purchased. The long-term noces were issued to partial finance the purchase of the fixed assets. MacBook s CALCULATOR Direct exchange rates for the British pound are as follows: PRINTER VERSION NEXT January 1, 2006 $1.8996 January 1, 2008 1.8365 Average for the last quarter 2013 1.5300 January 1, 2014 1.4919 December 31, 2014 1.4730 Average for 2014 1.4788 Average for August-December 2014 1.4950 The January 1, 2014, retained earnings balance of Lansing in dollars was $1,451,772, and the cumulative translation adjustment was a debit balance of $931,990. The beginning inventory of 418,000 was acquired during the last quarter of 2013 and the ending Inventory was acquired during the last five months of 2014. Sales were made and purchases and other expenses were incurred evenly during the year. Translate the December 31, 2014, account balances of Lansing Company into dollars assuming that the pound is the functional currency of Lansing Company (Round answers to o decimal places, 0.9. 5.125. Enter loss and debit cumulative translation adjustment using either a negative sin preceding the number -2,945 or parentheses e.g. (2,945).) Adjusted Translation Adjusted Trial Balance (5) Rate Trial Balance (5) Consolidated Income and Retained Earnings Statement 1220000 1.4788 Sales 1804136 Depreciation Expenses Other Expenses Net Income /(Loss) Retained Earnings 1/1 Less Dividends MacBook CALCULATOR PRINTEN VERSION 4 BACK NEXT Retained Earnings - 1/1 Less Dividends v Retained Earnings - 12/31 Balance Sheet | | Cash and Receivables merchandise inventory Property, Plant, and Equ Current Liabilities Long-term Notes Payabi Common Stock Retained Earnings Cumulative Translation Total SHOW LIST OF ACCOUNTS LINK TO TEXT HAVE FOR LATER SUBMIT ANSWER Question Attemptsi 0 of 5 used MacBook