On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $130,500. 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 Simbel's 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 (S) and Egyptian pounds (CE). respectively 10 points Cayce Corporation Simbel Company eBook Sales Cost of goods sold Salary expense Rent expense Other expense Dividend income-from Simbel $ 289,600 EE 827,7e0 98,600) (20,280) (7,600) (22,800) 15,400 (434,500) 76,480 (47,2e0) (60,880) Print Gain on sale of building, 10/1/17 36,000 EE 244,800 EE 137,800 244,800 (30,900)6,e EE 326,680 EE 152,600 310,280 $75,880 $ 324,000 75,88e References Net income Retained earnings, 1/1/17 Net income Dividends Retained earnings, 12/31/17 Cash and reccivables Inventory Prepaid expenses Investment in Simbel (initial value) Property plant & equipment (net) $ 369,800 $ 111,400 98,680 30,0e0 130, 500 417,280 $787,780 461,080 EE 923,8 EE 55,800 141,800 246,000 153,600 Total assets Accounts payable Notes payable-due in 2028 Common stock Additional paid-in capital Retained earnings, 12/31/17 $ 63,280 141,500 126,000 87,280 Total liabilities and equities $ 787,780 EE 923,800 Additional Information During 2016, the first year of joint operation, Simbel reported income of SE 169,000 earned evenly throughout the year. Simbel declared a dividend of SE 31,200 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 10,600 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2018. The exchange rates for 1E are as follows January 1, 2016 June 1, 2016 Weighted average rate for 2016 December 31, 2017 June 1, 2017 October 1, 2017 Weighted average rate for 2017 December 31, 2017 S 0.300 0.290 0.288 0.280 0.275 0.273 0.274 0.270 Translate Simbel's 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 subsidiary's functional currency Complete this question by entering your answers in the tabs below Prepare a Consolidation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Amounts to be deducted and negative amounts should be indicated with a minus sign.) Consolidation Worksheet Adjustments and Balances Cayce Debit Dollars Cost of goods sold Salary expense Rent expense Other expenses Dividend income Gain on sale of fixed asset, 10/1/17 Net income Retained earnings, 1 Net income Dividends Retained earnings, 1 Cash and recervables Prepaid rent Property, plant & equipment Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 1 Total liabilities and equities 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.) TRAN SLATION WORKSHEET Egyptian Ex Pounds Dollars Rate Sales Cost of goods sold Salary expense Rent expense (adjusted) Other expenses Gain on sale of fixed asset 10/1/17 Net income Retained earnings, 1 Net income Dividends Retained Cash and recervables earnings, 12/31/17 Prepaid rent (adjusted) Property, plant & equipment Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 1 Total liabilities and equities On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $130,500. 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 Simbel's 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 (S) and Egyptian pounds (CE). respectively 10 points Cayce Corporation Simbel Company eBook Sales Cost of goods sold Salary expense Rent expense Other expense Dividend income-from Simbel $ 289,600 EE 827,7e0 98,600) (20,280) (7,600) (22,800) 15,400 (434,500) 76,480 (47,2e0) (60,880) Print Gain on sale of building, 10/1/17 36,000 EE 244,800 EE 137,800 244,800 (30,900)6,e EE 326,680 EE 152,600 310,280 $75,880 $ 324,000 75,88e References Net income Retained earnings, 1/1/17 Net income Dividends Retained earnings, 12/31/17 Cash and reccivables Inventory Prepaid expenses Investment in Simbel (initial value) Property plant & equipment (net) $ 369,800 $ 111,400 98,680 30,0e0 130, 500 417,280 $787,780 461,080 EE 923,8 EE 55,800 141,800 246,000 153,600 Total assets Accounts payable Notes payable-due in 2028 Common stock Additional paid-in capital Retained earnings, 12/31/17 $ 63,280 141,500 126,000 87,280 Total liabilities and equities $ 787,780 EE 923,800 Additional Information During 2016, the first year of joint operation, Simbel reported income of SE 169,000 earned evenly throughout the year. Simbel declared a dividend of SE 31,200 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 10,600 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2018. The exchange rates for 1E are as follows January 1, 2016 June 1, 2016 Weighted average rate for 2016 December 31, 2017 June 1, 2017 October 1, 2017 Weighted average rate for 2017 December 31, 2017 S 0.300 0.290 0.288 0.280 0.275 0.273 0.274 0.270 Translate Simbel's 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 subsidiary's functional currency Complete this question by entering your answers in the tabs below Prepare a Consolidation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Amounts to be deducted and negative amounts should be indicated with a minus sign.) Consolidation Worksheet Adjustments and Balances Cayce Debit Dollars Cost of goods sold Salary expense Rent expense Other expenses Dividend income Gain on sale of fixed asset, 10/1/17 Net income Retained earnings, 1 Net income Dividends Retained earnings, 1 Cash and recervables Prepaid rent Property, plant & equipment Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 1 Total liabilities and equities 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.) TRAN SLATION WORKSHEET Egyptian Ex Pounds Dollars Rate Sales Cost of goods sold Salary expense Rent expense (adjusted) Other expenses Gain on sale of fixed asset 10/1/17 Net income Retained earnings, 1 Net income Dividends Retained Cash and recervables earnings, 12/31/17 Prepaid rent (adjusted) Property, plant & equipment Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 1 Total liabilities and equities