Livingston Company is a wholly owned subsidiary of Rose Corporation. Livingston operates Statement of Retained Earnings

For the Year Ending December $31,2012$

Liabilities and Equities

Liabilities

Common Stock

$\frac{R}{E},\frac{12}{31}\frac{?}{12}$

Currency Translation Adj.

Total Liabilities. & Equities

$176,000,GH$

$120,000$

$261,000$

$=557,000GH$

in a foreign country with financial statements recorded in Goghs $(GH).$ GH dollar is

Livingston Company's functional currency. Financial statements for the year $2012$ are as

follows:

Livingston Co$.\text{'}$s common stock was issued in $2004$ when the exchange rate was

$$1\mathrm{.}00=0\mathrm{.}48GH$; all fixed assets were acquired in $2005$ when the rate was

$$1\mathrm{.}00=0\mathrm{.}50GH.$

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 $63,000GH$ is $$1\mathrm{.}00=0\mathrm{.}59GH,$ and $$1\mathrm{.}00=0\mathrm{.}64GH$ for

ending inventory. Purchase of $150,000GH$ 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 $50,000GH$ with a net book value of $40000$ GH $.$

The following exchange rates were in effect during $2012$:

Please round all calculated account balances to the dollar.

Income Statement

For the Year Ended $12/31/12$