On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $140,400. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively.

Cayce

CorporationSimbel

CompanySales$227,200E878,300Cost of goods sold(107,400)(460,900)Salary expense(22,400)(80,800)Rent expense(8,700)(49,400)Other expenses(26,100)(64,100)Dividend incomefrom Simbel18,4250Gain on sale of building, 10/1/20047,000Net income$81,025E270,100Retained earnings, 1/1/20$335,000E146,600Net income81,025270,100Dividends(41,000)(67,000)Retained earnings, 12/31/20$375,025E349,700Cash and receivables$112,500E164,700Inventory99,700334,400Prepaid expenses30,0000Investment in Simbel (initial value)140,4000Property, plant, and equipment (net)452,400472,000Total assets$835,000E971,100Accounts payable$67,600E59,100Notes payabledue in 2023160,475145,100Common stock137,000257,000Additional paid-in capital94,900160,200Retained earnings, 12/31/20375,025349,700Total liabilities and equities$835,000E971,100

Additional Information

• During 2019, the first year of joint operation, Simbel reported income of E 180,000 earned evenly throughout the year. Simbel declared a dividend of E 33,400 to Cayce on June 1 of that year. Simbel also declared the 2020 dividend on June 1.
• On December 9, 2020, Simbel classified a E 11,700 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2021.
• The exchange rates for 1 E are as follows:

January 1, 2019$0.300June 1, 20190.290Weighted average rate for 20190.288December 31, 20190.280June 1, 20200.275October 1, 20200.273Weighted average rate for 20200.274December 31, 20200.270

Translate Simbel's 2020 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.