In January, $20$X$3,$ Dudwil Corporation acquired a foreign subsidiary, Holman Company, by paying cash for all of the outstanding common stock of Holman. On the purchase date, Holman Company's accounts were stated fairly in local currency units $($FC$).$ Subsequent sales of Holman's common stock have been purchased by Dudwil to maintain its $100\%$ ownership.

Holman's trial balance, in functional currency units $($same as the local currency units$),$ on December $31,20$X$7,$ follows:

Debit

Credit

Cash

$58,400$

Marketable securities

$32,500$

Accounts receivable $($net$)$

$51,370$

Inventories

$108,000$

Surrender value of life insurance

$7,200$

Intangible assets

$123,900$

Property, plant, and equipment

$636,000$

Accumulated depreciation

$93,850$

Accounts payable

$74,000$

Accrued interest payable

$7,120$

Notes payable

$52,000$

Bonds payable

$80,000$

Capital stock

$83,000$

Paid$-$in capital in excess of par

$190,300$

Retained earnings

$390,400$

Sales

$936,300$

Cost of goods sold

$762,000$

Interest expense

$7,120$

Depreciation expense

$39,350$

Amortization expense$--$intangibles

$3,100$

Other expenses

$84,230$

Gain on sale of equipment

$2,400$

Interest income

$3,800$

Total

$1,913,170$

$1,913,170$

The following additional information is available:

a$.$

Holman uses the LIFO inventory method to account for its inventory. Purchases took place uniformly throughout $20$X$7.$ There were no intercompany sales during $20$X$7.$

b$.$

During $20$X$7,$ Holman declared and paid a dividend of $7,000$ FCs at the end of each calendar quarter.

c$.$

The balances in the contributed capital accounts result from the following transactions:

Paid$-$in Capital

Date

Capital Stock

in Excess of Par

January $1,20$X$3,$ issuance

$40,000$

FC

$80,000$

FC

June $30,20$X$5,$ issuance

$40,000$

$104,300$

January $1,20$X$6,$ issuance

$10,000$

$20,000$

August $1,20$X$6,$ retirement

$(7,000)$

$(14,000)$

$83,000$

FC

$190,300$

FC

The August $1,20$X$6,$ retirement of stock involves stock originally issued on January $1,20$X$3.$

d$.$

The December $31,20$X$6,$ retained earnings balance of $418,400$ FC$,$ translated into dollars, is $$179,460.$

e$.$

Selected translation rates are as follows:

Date

$1$ FC equal to

January $1,20$X$3$

$$0\mathrm{.}30$

$20$X$3$ average

$0\mathrm{.}32$

$20$X$4$ average

$0\mathrm{.}38$

February $1,20$X$5$

$0\mathrm{.}42$

June $30,20$X$5$

$0\mathrm{.}45$

$20$X$5$ average

$0\mathrm{.}45$

January $1,20$X$6$

$0\mathrm{.}50$

February $1,20$X$6$

$0\mathrm{.}52$

August $1,20$X$6$

$0\mathrm{.}60$

December $31,20$X$6$

$0\mathrm{.}61$

$20$X$6$ average

$0\mathrm{.}56$

March $31,20$X$7$

$0\mathrm{.}63$

June $30,20$X$7$

$0\mathrm{.}66$

September $30,20$X$7$

$0\mathrm{.}70$

December $31,20$X$7$

$0\mathrm{.}75$

$20$X$7$ average

$0\mathrm{.}70$

Required:

Prepare a schedule to translate the December $31,20$X$7,$ trial balance of Holman Company from local currency units to dollars. The schedule should show the trial balance in FCs$,$ the exchange rates, and the trial balance. $($Do not extend the trial balance to statement columns. $(50$ points$)$