Mathayim Co$,$ a US company invested $400,000$ to purchase Alpayim, an Israeli company that reports in Israeli Shekels. On

December $31,20$x$1,$ Alpayim reported net income of $180,000.$

Shekels. Following are rates and other necessary information:

Exchange rate Cost Account Amount

average exchange rate $20$x$10\mathrm{.}29$ Sales $1,500,000$

average exchange rate $20$x$20\mathrm{.}37$ Cost of Goods Sold $850,000$

spot rate yearend $20$x$20\mathrm{.}38$ Depreciation $120,000$

spot rate at purchase of fixed assets $0\mathrm{.}24330,000$ Other Expenses $360,000$

spot rate at purchase of inventory $0\mathrm{.}31200,000$ Cash $160,000$

spot rate at initial investment $0\mathrm{.}27480,000$ Accounts Receivable $180,000$

spot rate at declaration of dividends $0\mathrm{.}2590,000$ Accounts Payable $130,000$

Instructions: Translate the financials for the year $20$x$2$ into US Dollars. Show exchange rates wherever applicable.

$($a$)$ Assume the local currency of Alpayim was its functional currency, and the translation method is used.

$($b$)$ Assume the local currency of Alpayim was highly inflationary, and the remeasurement method is used.