On January 1, 2019, Purple Inc. acquired Yellow Company as a wholly-owned subsidiary in Canada for $51,000 (US$). Yellows Dec 31, 2019 pre-closing Trial Balance in Canadian dollar (CAN$) is as follows:

	(in CAN$)
Accounts	Debit	Credit
Current assets	57,000
PP&E, net	90,000
Liabilities		62,000
Common stock		60,000
Retained earnings		0
Sales		150,000
COGS and Expenses	110,000
Dividends	15,000
Total	272,000	272,000

Additional information:

a) Canadian dollar is the functional currency for Yellow Company.

b) Dividends were declared and paid on Nov. 1, 2019.

c) Spot rates at various dates for 2019 follow:

January 1 CAN $1 = US $0.75

November 1 CAN $1 = US $0.77

December 31 CAN $1 = US $0.80

Annual Average CAN $1 = US $0.78

d) Assume Yellow's revenues, purchases, operating expenses, depreciation expense, and income taxes were incurred evenly throughout 2019.

Requirements (type your answers in the space provided below):

1) Compute AOCI-Translation Adjustment using equity accounts.

2) Assume all AAP is related to a patent with a 4-year economic life on the acquisition date. Prepare a schedule to show the beginning and ending balances and the amortization of the patent in US for 2019. Show the translation adjustment for AAP in 2019, if any.

3) Assume Purple uses full equity method to record investments. Whats the balance of Purples Equity Investment in Yellow on 12/31/2019?

4) Prepare the [C] entry on 12/31/2019 for consolidation.

5) Prepare the [D] entries on 12/31/2019 for consolidation.