Part VII: A U.S.company operates a 100%-owned British subsidiary. The US dollar is the functional currency of the subsidiary. Financial statements for the subsidiary for the fiscal year-end Dec 31, 2017 are as follows: Income Statement Pounds Sales 850.000 Cost of Goods Sold Beginning Inventory Purchases 530,000 Goods Available For Sale Less: Ending Inventory -110.000 Cost of Goods Sold 482,000 Depreciation 75,000 Selling and Admin. Expenses 90.000 53.000 -700.000 Income Taxes 150.000 Net Income Current Assets Cash Accts. Rec. Inventories Partial Balance Sheet Current Liabilities 125,000 Notes Payable 220,000 Accts. Payable 110,000 Other Current Liab. 455.000 Long-term Liab. (issued 7/1/2015) 135.000 220,000 68.000 423.000 620,000 Other Information: 1. Equipment, before year's depreciation, of 500,000 pounds was acquired July 1, 2015 and of 250,000 pounds was acquired June 30, 2017. Depreciation for the period was as follows: Equipment - 2015 acquisitions 50,000 - 2017 acquisitions 25,000 2. The beginning inventory was acquired when the exchange rate was $1.525. The inventory is valued on a FIFO basis. Purchases and the ending inventory were acquired evenly throughout the period. 3. Dividends were paid by the subsidiary on June 30 amounting to 95,000 pounds. 4. Sales were made and all expenses were incurred uniformly throughout the year.. 5. Exchange rates for the pound on various dates were: Beginning inventory 1.525 7/1/2015 1.475 1/1/2017 1.552 6/30/2017 1.565 12/31/2017 1.528 Average for 2017 1.555 Required: Compute the dollar amount that each of the following would be reported in the 2017 financial statements 1. Cost of Goods Sold 2. Depreciation Expense 3. Equipment