On January 2, 2014, P Company, a U.S.-based company, acquired for 2,000,000 francs an 80% interest in SFr Company, a Swiss company. On January 2, 2014, SFr Company reported a retained earnings balance of 480,000 francs. SFR's books are maintained in francs and conform with the U.S. generally accepted accounting principles. Trial balances of the two companies as of December 31, 2015, are presented here:

DebitsP Company (Dollars) first francs Second SFr Company (Francs)Cash506,000 953,000Accounts Receivable518,000 659,000Inventory (FIFO cost)632,000 1,047,000Investment in SFr Company300,000Land447,000 495,000Buildings (net)608,000 544,000Equipment (net)293,000 403,000Dividends Declared200,000 376,000Cost of Goods Sold2,731,000 2,291,000Depreciation Expense211,000 125,000Other Expense917,000 814,000Income Tax Expense101,000 101,000 Totals7,464,000 7,808,000

CreditsP Company (Dollars)SFr Company (Francs)Accounts Payable540,000802,000Short-term Notes Payable301,000647,000Bonds Payable700,000850,000Common Stock800,000960,000Additional Paid-in Capital300,000300,000Retained Earnings, 1/1545,000516,000Sales4,223,8563,733,000Dividend Income54,144 Totals7,464,0007,808,000

1.		A beginning inventory of 834,000 francs was acquired when the exchange rate was $0.165.
2.		Purchases made uniformly throughout 2015 were 2,504,000 francs.
3.		The franc is identified as the subsidiarys functional currency.
4.		The subsidiarys beginning (1/1/15) retained earnings and cumulative translation adjustment (credit) in dollars was $83,162 and $29,759, respectively.
5.		All plant assets were acquired before the parent obtained a controlling interest in the subsidiary.
6.		Sales are made and all expenses are incurred uniformly throughout the year.
7.		The ending inventory was acquired during the last quarter.
8.		The subsidiary declared and paid dividends of 376,000 francs on September 2.
9.		The following direct exchange rate quotations were available:

Date of subsidiary acquisition$0.15 Average for 2014 0.156 January 1, 2015 0.17 September 2, 2015 0.18 December 31, 2015 0.19 Average for the 4th quarter, 2015 0.185 Average for 2015 0.176