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Incorporated amortizes the patent over 1 0 years. A trial balance translated to U . S . dollars for Salina Ranching is as follows: Salina

Incorporated amortizes the patent over 10 years. A trial balance translated to U. S. dollars for Salina Ranching is as follows:
Salina Ranching Company
Trial Balance Translated
December 31,20X3
Australian Dollars Exchanges Rate U.S. Dollars
Cash A$ 44,1000.60 $ 26,460
Accounts Receivable (net)72,0000.6043,200
Inventory 86,0000.6051,600
Plant and Equipment 240,0000.60144,000
Cost of Goods Sold 330,0000.65214,500
Depreciation Expense 24,0000.6515,600
Operating Expenses 131,5000.6585,475
Interest Expense 5,7000.653,705
Dividends Declared 9,0000.676,030
Total $ 590,570
Accumulated other comprehensive
Income - Translation Adjustment(debit)16,760
Total Debits A$ 942,300 $ 607,330
Accumulated Depreciation A$ 60,0000.60 $ 36,000
Accounts Payable 53,8000.6032,280
Payable to Palermo Incorporated 10,8000.606,480
Interest Payable 3,0000.601,800
12% Bonds Payable 100,0000.6060,000
Premium on Bonds 5,7000.603,420
Common Stock 90,0000.7063,000
Retained Earnings 40,0000.7028,000
Sales 579,0000.65376,350
Total Credits A$ 942,300 A$ 607,330
Assume that the Australian dollar (A$) is the functional currency and that Palermo uses the fully adjusted equity method for accounting for its investment in Salina Ranching. A December 31,20X3, trial balance for Palermo Incorporated follows. Use this translated trial balance for completing this problem.
Item Debit Credit
Cash $ 38,000
Accounts Receivable (net)140,000
Receivable from Salina Ranching 6,480
Inventory 128,000
Plant and Equipment 500,000
Investment in Salina Ranching 152,064
Cost of Goods Sold 600,000
Depreciation Expense 28,000
Operating Expenses 204,000
Interest Expense 2,000
Dividends Declared 50,000
Translation Adjustment 22,528
Accumulated Depreciation $ 90,000
Accounts Payable 60,000
Interest Payable 2,000
Common Stock 500,000
Retained Earnings, January 1,20X3179,656
Sales 1,000,000
Income from Subsidiary 39,416
Total $ 1,871,072 $ 1,871,072
Prepare a comprehensive consolidation worksheet as of December 31,20X3.

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