On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $133,200. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbels books. Simbel had no retained earnings at the date of acquisition. Following are the 2017 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively.

	Cayce Corporation				Simbel Company
Sales	$	214,400			E	841,500
Cost of goods sold		(101,000	)			(441,700	)
Salary expense		(20,800	)			(77,600	)
Rent expense		(7,900	)			(47,800	)
Other expenses		(23,700	)			(61,700	)
Dividend incomefrom Simbel		16,225				0
Gain on sale of building, 10/1/17		0				39,000
Net income	$	77,225			E	251,700
Retained earnings, 1/1/17	$	327,000			E	140,200
Net income		77,225				251,700
Dividends		(33,000	)			(59,000	)
Retained earnings, 12/31/17	$	371,225			E	332,900
Cash and receivables	$	111,700			E	155,900
Inventory		98,900				316,800
Prepaid expenses		30,000				0
Investment in Simbel (initial value)		133,200				0
Property, plant & equipment (net)		426,800				464,000
Total assets	$	800,600			E	936,700
Accounts payable	$	64,400			E	56,700
Notes payabledue in 2020		146,675				142,700
Common stock		129,000				249,000
Additional paid-in capital		89,300				155,400
Retained earnings, 12/31/17		371,225				332,900
Total liabilities and equities	$	800,600			E	936,700

Additional Information

During 2016, the first year of joint operation, Simbel reported income of E 172,000 earned evenly throughout the year. Simbel declared a dividend of E 31,800 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 10,900 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

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.

1. Translation Worksheet

2. Consolidation Worksheet