Income Statement (from January 1, 2016 to December 31, 2016) Account Local Currency (LC) Revenues 6,500,000 3,500,000 Selling, General and Administrative Expenses (except depreciation) Depreciation 500,000 Net Income 2,500,000 Statement of Retained Earnings (from January 1, 2016 to December 31, 2016) Account Local Currency (LC) Retained Earnings of Jan 1, 2016 6,500,000 Net Income 2,500,000 Dividends 0 Retained Earnings of Dec 31, 2016 9,000,000 Balance Sheet (as of December 31, 2016) Asset Local Currency (LC) 1,500,000 Cash Account Receivables Land Building Accumulated Depreciation Total 2,500,000 5,000,000 12,500,000 -2,500,000 19,000,000 Local Currency (LC) Liability and Equity Account Payables 2,500,000 Loan 5,000,000 Common Stock 2,500,000 Retained Earnings 9,000,000 Total 19,000,000 Table of Exchange Rates Description USD per LC When the company was established and bought Land and Building 0.40 0.51 2016/1/1 2016/12/31 0.56 Average exchange rate of 2016 0.52 Information about Retained Earnings Local Currency (LC) 6,500,000 Method USD 2,600,000 Current Rate Method Temporal Method 650,000 Q2. Translate the set of financial statements of local currency to the set of financial statements of USD by Temporal method below. Income Statement (from January 1, 2016 to December 31, 2016) Account USD Revenues undisclosed Selling, General and Administrative Expenses (except depreciation) Depreciation Remeasurement GAIN Net Income Statement of Retained Earnings (from January 1, 2016 to December 31, 2016) Account USD Retained Earnings of Jan 1, 2016 Net Income Dividends undisclosed Retained Earnings of Dec 31, 2016 Balance Sheet (as of December 31, 2016) Asset USD Cash Account Receivables undisclosed Land Building Accumulated Depreciation Total undisclosed undisclosed USD Liability and Equity Account Payables undisclosed Loan Common Stock Retained Earnings Total