On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $143,100. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbels books. Simbel had no retained earnings at the date of acquisition. Following are the 2017 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively. Cayce Corporation Simbel Company Sales $ 232,000 E 892,100 Cost of goods sold (109,800 ) (468,100 ) Salary expense (23,000 ) (82,000 ) Rent expense (9,000 ) (50,000 ) Other expenses (27,000 ) (65,000 ) Dividend incomefrom Simbel 19,250 0 Gain on sale of building, 10/1/17 0 50,000 Net income $ 82,450 E 277,000 Retained earnings, 1/1/17 $ 338,000 E 149,000 Net income 82,450 277,000 Dividends (44,000 ) (70,000 ) Retained earnings, 12/31/17 $ 376,450 E 356,000 Cash and receivables $ 112,800 E 168,000 Inventory 100,000 341,000 Prepaid expenses 30,000 0 Investment in Simbel (initial value) 143,100 0 Property, plant & equipment (net) 462,000 475,000 Total assets $ 847,900 E 984,000 Accounts payable $ 68,800 E 60,000 Notes payabledue in 2020 165,650 146,000 Common stock 140,000 260,000 Additional paid-in capital 97,000 162,000 Retained earnings, 12/31/17 376,450 356,000 Total liabilities and equities $ 847,900 E 984,000 Additional Information During 2016, the first year of joint operation, Simbel reported income of E 183,000 earned evenly throughout the year. Simbel declared a dividend of E 34,000 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 12,000 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, 2016 0.280 June 1, 2017 0.275 October 1, 2017 0.273 Weighted average rate for 2017 0.274 December 31, 2017 0.270 Translate Simbels 2017 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiarys functional currency

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• Translation Worksheet
• Consolidation Worksheet

Prepare a Translation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Round your "Dollars" answers to the nearest whole number. Amounts to be deducted and negative amounts should be indicated with a minus sign.)

CAYCE CORPORATION
TRANSLATION WORKSHEET
Account	Egyptian Pounds	Exchange Rate	Dollars
Sales	(892,100)selected answer correct	0.274selected answer correct	(244,435)selected answer correct
Cost of goods sold	468,100selected answer correct	0.274selected answer correct	128,259selected answer correct
Salary expense	82,000selected answer correct	0.274selected answer correct	22,468selected answer correct
Rent expense (adjusted)	38,000selected answer correct	0.274selected answer correct	10,412selected answer correct
Other expenses	65,000selected answer correct	0.274selected answer correct	17,810selected answer correct
Gain on sale of fixed asset, 10/1/17	(50,000)selected answer correct	0.273selected answer correct	(13,650)selected answer correct
Net income	(289,000)		(79,136)not attempted
Retained earnings, 1/1/17	(149,000)selected answer correct	0.286selected answer incorrect	(42,844)selected answer correct
Net income	(289,000)		(79,136)
Dividends	70,000selected answer correct	0.275selected answer correct	19,250selected answer correct
Retained earnings, 12/31/17	(368,000)		(102,730)
Cash and receivables	168,000selected answer correct	0.270selected answer correct	45,360selected answer correct
Inventory	341,000selected answer correct	0.270selected answer correct	92,070selected answer correct
Prepaid rent (adjusted)	12,000selected answer correct	0.270selected answer correct	3,240selected answer correct
Property, plant & equipment	475,000selected answer correct	0.270selected answer correct	128,250selected answer correct
Total assets	996,000		268,920
Accounts payable	(60,000)selected answer correct	0.270selected answer correct	(16,200)selected answer correct
Notes payable	(146,000)selected answer correct	0.270selected answer correct	(39,420)selected answer correct
Common stock	(260,000)selected answer correct	0.300selected answer correct	(78,000)selected answer correct
Additional paid-in capital	(162,000)selected answer correct	0.300selected answer correct	(48,600)selected answer correct
Retained earnings, 12/31/17	(368,000)		(102,730)
Subtotal	(996,000)		(284,950)not attempted
Cumulative translation adjustment (negative)selected answer correct	not attempted	not attempted	6,070selected answer incorrect
Total liabilities and equities	(996,000)		(278,880)not attempted

• Translation Worksheet