On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $139,500. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbels books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively.

Cayce Corporation Simbel CompanySales$225,600 E873,700 Cost of goods sold (106,600) (458,500)Salary expense (22,200) (80,400)Rent expense (8,600) (49,200)Other expenses (25,800) (63,800)Dividend incomefrom Simbel 18,150 0 Gain on sale of building, 10/1/20 0 46,000 Net income$80,550 E267,800 Retained earnings, 1/1/20$334,000 E145,800 Net income 80,550 267,800 Dividends (40,000) (66,000)Retained earnings, 12/31/20$374,550 E347,600 Cash and receivables$112,400 E163,600 Inventory 99,600 332,200 Prepaid expenses 30,000 0 Investment in Simbel (initial value) 139,500 0 Property, plant, and equipment (net) 449,200 471,000 Total assets$830,700 E966,800 Accounts payable$67,200 E58,800 Notes payabledue in 2023 158,750 144,800 Common stock 136,000 256,000 Additional paid-in capital 94,200 159,600 Retained earnings, 12/31/20 374,550 347,600 Total liabilities and equities$830,700 E966,800

Additional Information

During 2019, the first year of joint operation, Simbel reported income of E 179,000 earned evenly throughout the year. Simbel declared a dividend of E 33,200 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 11,600 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, 2019 0.290Weighted average rate for 2019 0.288December 31, 2019 0.280June 1, 2020 0.275October 1, 2020 0.273Weighted average rate for 2020 0.274December 31, 2020 0.270

Translate Simbels 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 subsidiarys functional currency.