On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $141,300. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbels books. Simbel had no retained earnings at the date of acquisition. Following are the 2017 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively.

	Cayce Corporation				Simbel Company
Sales	$	228,800			E	882,900
Cost of goods sold		(108,200	)			(463,300	)
Salary expense		(22,600	)			(81,200	)
Rent expense		(8,800	)			(49,600	)
Other expenses		(26,400	)			(64,400	)
Dividend incomefrom Simbel		18,700				0
Gain on sale of building, 10/1/17		0				48,000
Net income	$	81,500			E	272,400
Retained earnings, 1/1/17	$	336,000			E	147,400
Net income		81,500				272,400
Dividends		(42,000	)			(68,000	)
Retained earnings, 12/31/17	$	375,500			E	351,800
Cash and receivables	$	112,600			E	165,800
Inventory		99,800				336,600
Prepaid expenses		30,000				0
Investment in Simbel (initial value)		141,300				0
Property, plant & equipment (net)		455,600				473,000
Total assets	$	839,300			E	975,400
Accounts payable	$	68,000			E	59,400
Notes payabledue in 2020		162,200				145,400
Common stock		138,000				258,000
Additional paid-in capital		95,600				160,800
Retained earnings, 12/31/17		375,500				351,800
Total liabilities and equities	$	839,300			E	975,400

During 2016, the first year of joint operation, Simbel reported income of E 181,000 earned evenly throughout the year. Simbel declared a dividend of E 33,600 to Cayce on June 1 of that year. Simbel also declared the 2017 dividend on June 1.

On December 9, 2017, Simbel classified a E 11,800 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2018.

The exchange rates for 1 E are as follows:

January 1, 2016	$	0.300
June 1, 2016		0.290
Weighted average rate for 2016		0.288
December 31, 2017		0.280
June 1, 2017		0.275
October 1, 2017		0.273
Weighted average rate for 2017		0.274
December 31, 2017		0.270
US DOLLARS

A. Translation Worksheet

account	Egyptian Pounds	Exchange Rate	Dollars

B. consolidation worksheet

account	cayce $	simbel $	debit	credit	consolidated balances