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. SFrs books are maintained in francs and are in conformity with U.S. generally accepted accounting principles. Trial balances of the two companies as of December 31, 2015, are presented here:

Debits		P Company (Dollars)		SFr Company (Francs)
Cash		499,000		970,000
Accounts Receivable		512,000		658,000
Inventory (FIFO cost)		624,000		1,032,000
Investment in SFr Company		300,000
Land		448,000		503,000
Buildings (net)		611,000		553,000
Equipment (net)		289,000		404,000
Dividends Declared		199,000		375,000
Cost of Goods Sold		2,726,000		2,331,000
Depreciation Expense		210,000		123,000
Other Expense		913,000		824,000
Income Tax Expense		99,000		102,000
Totals		7,430,000		7,875,000
Credits		P Company (Dollars)		SFr Company (Francs)
Accounts Payable		536,000		804,000
Short-term Notes Payable		302,000		654,000
Bonds Payable		700,000		850,000
Common Stock		800,000		960,000
Additional Paid-in Capital		300,000		300,000
Retained Earnings, 1/1		550,000		511,000
Sales		4,188,000		3,796,000
Dividend Income		54,000
Totals		7,430,000		7,875,000

Other information related to the subsidiary follows:

1.		Beginning inventory of 836,000 francs was acquired when the exchange rate was $0.165.
2.		Purchases made uniformly throughout 2015 were 2,527,000 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 were $82,835 and $29,236, 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 375,000 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

(a) Prepare a workpaper to translate the trial balance of the subsidiary into dollars using the current rate method. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Translation Rate U.S. $ Francs Consolidated Statement of Income and Retained Earnings Balance Sheet