On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $135,000. Cayce is a U.S-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts or its investme n Sm be under he initial value method. Any excess of r value of consideration ans ed over book value s attributable to undervalued land on S mbers books Simbe had no retained ear ngs he date of acqu sit on. 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 (EE), respectively Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel S 217,600 EE 850.700 (102.600) (21.200) (8.100) (24.300) 18,775 (440.500) (78.400) 48.200) (62.300) 41.000 78.175 EE 250.300 141 800 256.300 Gain on sale of building. 10/1/17 Net income Retained earnings, 1/1/17 Net income 5 329.000 78.175 Retained eamings, 12/31/17 Cash and receivables 5 372.175 EE 337.100 EE 158.100 321.200 Prepaid expenses Investmant in Simbal (nitial valua) Property, plant& equipment (nat) 99.100 30.000 135,000 433,200 5 800.200 488.000 EE 945.300 57 300 143.300 251,000 156,600 Total assets Notes payable-due in 2020 Common stock Add tional paid-in capital Retained carnings, 1 50.125 131,000 00,700 Total iabilities and aquities 809 200 45 300 Additional Information During 2016, the first year of joint operation, Simbel reported income of CE 174,000 earned evenly throughout the year. Simbel declared a dividend of CE 32,200 to Cayce on June 1 of that year Simbel also declared the 2017 dividend on June 1 .On December 9, 2017, Simbel classified a CE 11,100 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 EE are as follows January 1, 2018 June 1, 2016 Weighted average rate for 2018 December 31. 2017 June 1. 2017 October 1. 2017 Weighted average rate for 2017 Decamber 31, 2017 3 0.300 0 288 0 280 0 275 0 273 0 274 Translate Simbers 2017 fnancial 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 On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $135,000. Cayce is a U.S-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts or its investme n Sm be under he initial value method. Any excess of r value of consideration ans ed over book value s attributable to undervalued land on S mbers books Simbe had no retained ear ngs he date of acqu sit on. 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 (EE), respectively Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel S 217,600 EE 850.700 (102.600) (21.200) (8.100) (24.300) 18,775 (440.500) (78.400) 48.200) (62.300) 41.000 78.175 EE 250.300 141 800 256.300 Gain on sale of building. 10/1/17 Net income Retained earnings, 1/1/17 Net income 5 329.000 78.175 Retained eamings, 12/31/17 Cash and receivables 5 372.175 EE 337.100 EE 158.100 321.200 Prepaid expenses Investmant in Simbal (nitial valua) Property, plant& equipment (nat) 99.100 30.000 135,000 433,200 5 800.200 488.000 EE 945.300 57 300 143.300 251,000 156,600 Total assets Notes payable-due in 2020 Common stock Add tional paid-in capital Retained carnings, 1 50.125 131,000 00,700 Total iabilities and aquities 809 200 45 300 Additional Information During 2016, the first year of joint operation, Simbel reported income of CE 174,000 earned evenly throughout the year. Simbel declared a dividend of CE 32,200 to Cayce on June 1 of that year Simbel also declared the 2017 dividend on June 1 .On December 9, 2017, Simbel classified a CE 11,100 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 EE are as follows January 1, 2018 June 1, 2016 Weighted average rate for 2018 December 31. 2017 June 1. 2017 October 1. 2017 Weighted average rate for 2017 Decamber 31, 2017 3 0.300 0 288 0 280 0 275 0 273 0 274 Translate Simbers 2017 fnancial 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
