January 1, 2016 December 31, 2016 (24 pts) Part 5: Foreign Currency Translation: Temporal Method On January 1, 2016, Marx Corporation, a U.S. based company, purchased Tiamo Company, located in Mexico. Tiamo Company's functional currency is not Mexican Pesos. Direct exchange rates for the Mexican Pesos are: $.6923 .6184 Average for 2016 Dividend declaration date .6501 .6755 a) Complete the translation schedule by filling in the appropriate rates and U.S. dollar amounts. Mexican U.S. Pesos Rate Dollars Combined Income Statement and Retained Earnings Revenues 30,000 Operating Expenses: Depreciation 1,000 Operating Expenses: All Other 10,000 Translation Gain (Loss) Net Income 19,000 Retained Earnings, Jan 1 7,000 Dividends 8,000 Retained Earnings, Dec 31 18,000 Balance Sheet Cash and Receivables 23,000 Property, Plant & Equipment 19,000 Total Assets 42,000 Accounts Payable 10,500 Common Stock 13,500 Retained Earnings 18,000 Total Liab& Equity 42,000 b) Use the back of this page to prepare a schedule to verify the translation gain (loss). Tiamo Company issued no stock during 2016 Hint: Tiamo Company's net monetary asset position (cash and receivables less accounts payable) on January 1, 2016, was 500 pesos. January 1, 2016 December 31, 2016 (24 pts) Part 5: Foreign Currency Translation: Temporal Method On January 1, 2016, Marx Corporation, a U.S. based company, purchased Tiamo Company, located in Mexico. Tiamo Company's functional currency is not Mexican Pesos. Direct exchange rates for the Mexican Pesos are: $.6923 .6184 Average for 2016 Dividend declaration date .6501 .6755 a) Complete the translation schedule by filling in the appropriate rates and U.S. dollar amounts. Mexican U.S. Pesos Rate Dollars Combined Income Statement and Retained Earnings Revenues 30,000 Operating Expenses: Depreciation 1,000 Operating Expenses: All Other 10,000 Translation Gain (Loss) Net Income 19,000 Retained Earnings, Jan 1 7,000 Dividends 8,000 Retained Earnings, Dec 31 18,000 Balance Sheet Cash and Receivables 23,000 Property, Plant & Equipment 19,000 Total Assets 42,000 Accounts Payable 10,500 Common Stock 13,500 Retained Earnings 18,000 Total Liab& Equity 42,000 b) Use the back of this page to prepare a schedule to verify the translation gain (loss). Tiamo Company issued no stock during 2016 Hint: Tiamo Company's net monetary asset position (cash and receivables less accounts payable) on January 1, 2016, was 500 pesos