I just need to know how to figure out they came up with the exposed net asset position - 1/1 value above in the amount of 1,720,000

Here is more information:

On January 1, 2019, a U.S. company purchased 100% of the outstanding stock of Ventana Grains, a company located in Latz City, New Zealand. Ventana Grains was organized on January 1, 2000. All the property, plant, and equipment held on January 1, 2019, was acquired when the company was organized. The business combination was accounted for as a purchase transaction. The 2019 financial statements for Ventana Grains, prepared in its local currency, the New Zealand dollar, are given here.

VENTANA GRAINS
Comparative Balance Sheets January 1 and December 31, 2019
	Jan 1	Dec 31
Cash and Receivables	500,000	880,000
Inventories	600,000	500,000
Land	400,000	400,000
Buildings (net)	650,000	605,000
Equipment (net)	465,000	470,000
Totals	2,615,000	2,855,000
Short-term Accounts and Notes	295,000	210,000
Long-term Notes (600,000 issued 9/1/06, 80,000 issued 1/1/19	600,000	680,000
Common Stock	800,000	800,000
Additional Paid-in Capital	200,000	200,000
Retained Earnings	720,000	965,000
Totals	2,615,000	2,855,000

VENTANA GRAINS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2019
Revenues		3,225,000
Cost of Good Sold:
Beginning Inventory	600,000
Purchases	2,100,000
Cost of Goods Available for Sale	2,700,000
Less: Ending Inventory	500,000
Cost of Good Sold:		2,200,000
Gross Profit on Sales		1,025,000
Depreciation Expense	140,000
Other Expenses	540,000	680,000
Net Income		345,000
Jan. 1 Retained Earnings		720,000
Total		1,065,000
Less Dividends Paid		100,000
Dec. 31 Retained Earnings		965,000

The account balances are computed in conformity with U.S. generally accepted accounting standards.

Other information is as follows:

1. Direct exchange rates for the New Zealand dollar on various dates were:

Date	Exchange Rate
January 1, 2000	$0.8011
September 1, 2010	0.5813
January 1, 2019	0.7924
July 1, 2019	0.7412
December 31, 2019	0.7298
Average for 2019	0.7480
Average for last 4 months on 2019	0.7476

1. Ventana Grains purchased additional equipment for 100,000 New Zealand dollars on July 1, 2019, by issuing a note for 80,000 New Zealand dollars and paying the balance in cash.
2. Sales were made and purchases and Other Expenses were incurred evenly throughout the year.
3. Depreciation for the period in New Zealand dollars was computed as follows:

Building 45,000

EquipmentPurchased before 1/1/2019 85,000

EquipmentPurchased July 1, 2019 10,000

1. The inventory is valued on a FIFO basis. The beginning inventory was acquired when the exchange rate was $.7480. The ending inventory was acquired during the last four months of 2019.
2. Dividends of 50,000 New Zealand dollars were paid on July 1 and December 31.

Required:

1. Translate the financial statements into dollars assuming that the local currency of the foreign subsidiary was identified as its functional currency.

1. Prepare a schedule to verify the translation adjustment determined in requirement A. Describe how the translation adjustment would be reported in the financial statements.

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