Naulit Co acquired 100% of a foreign subsidiary. The subsidiary's trial balance reported the following balances in the subsidiary's local currency units (ICU)at the end of the current year. Debits Credits Cash LCU 50,000 Accounts payable LCU 40,000 Accounts receivable 100,000 Unearned revenue 20,000 Equipment, net 60,000 Ordinary shares 75,000 Cost of sales 20,000 Share premium 25,000 Depreciation expense 4,000 Retained earnings-1/1 40,000 Operating expenses 13,500 Revenues 50,000 Dividends 2,500 The equipment was purchased on March 1 of last year. The peso equivalent of 1LCU to the peso was, P20 (date of the machines purchase); P22 (average for the current year); P23 (date of dividend declaration); P24 (date of dividend payment); P55 (date at the end of the current year. The general price index were the ff: 2004 100 January 1, 2008 150 Average price index for 2008 400 December 31, 2008 525 The Philippine peso equivalent of the retained earnings on January 1 amounted to P760,000. Assume all sales and expenses to occurred evenly throughout the year