1. Lakeston Company is a wholly owned subsidiary of Bee Corporation. Livingston operates in a foreign country with financial statements recorded in Goghs (GH). US dollar is Lakeston Company's functional currency. Financial statements for the year 2012 are as follows:

(TEMPORAL METHOD)

• Lakeston Co.'s common stock was issued in 2004 when the exchange rate was $1.00 = 0.48 GH; all fixed assets were acquired in 2005 when the rate was $1.00=0.50 GH.
• As of Jan. 1, 2012, the R/E balance was translated at $395,000.
• Inventory was acquired evenly throughout the year. Assume historical exchange rate for beginning inventory of 63,000 GH is $1.00 = 0.59 GH, and $1.00 = 0.64 GH for ending inventory. Purchase of 150,000 GH inventory was made evenly across year.
• Dividends were declared on April 1, 2012, and a piece of equipment was sold on September 1, 2012 for 50,000 GH with a net book value of 40000 GH.
• The following exchange rates were in effect during 2012:

Jan 1, 2012$ 1.00= .60 GHApr 1, 2012$ 1.00= .62 GHSep 1, 2012$ 1.00= .58 GHDec 31, 2012$ 1.00= .65 GHweighted avg. rate for 2012$ 1.00= .63 GH