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 $ 289,600 Sales Cost of goods sold Salary expense Rent expense Other expense Dividend income-from Simbel 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 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 $ 289,600 Sales Cost of goods sold Salary expense Rent expense Other expense Dividend income-from Simbel 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