Perform translations under both current and temporal method

Current Rate Method LO7 Dorsey Corporation purchased 90% of the common stock of Lansing Company on January 1, 2002. The cost of the investment was equal to the book value interest acquired. Lansing Com- pany operates two retail stores and an exporting business in London that specializes in buy- ing and selling British tweeds. The subsidiary provided the following financial statements in pounds to the parent company: 2,900,000 1,400,000) (300,000) (400,000) 800,000 900,000 1,700,000 (325,000) 1,375,000 Sales Cost of Goods Sold Depreciation Expense ther Expenses Net Income 1/1 Retained Earnings Less: Dividends Declared and Paid, December 31 12/31 Retained Earnings LANSING COMPANY Balance Sheet December 31, 2008 Cash and Receivables Merchandise Inventory Property, Plant, and Equipment 1,275,000 490,000 3,450,000 ,215,000 Total Current Liabilities Long-Term Notes Payable Capital Stock Retained Earnings 640,000 1,200,000 2,000,000 1,375,000 5,215,000 Total Lansing Company was incorporated on January 1, 2000, at which time all the property, plant, and equipment was purchased. The long-term notes were issued to partially finance the pur- chase of the fixed assets. Direct exchange rates for the British pound are as follows January 1, 2000 January 1, 2002 Average for the last quarter 2007 January 1, 2008 December 31, 2008 Average for 2008 Average for August-December 2008 $1.8996 1.8365 1.5300 1.4919 1.4730 1.4788 1.4950 The January 1, 2008, retained earnings balance of Lansing in dollars was $1,593,408, and the cumulative translation adjustment was a debit balance of $939,898. The beginning inventory of 420,000 was acquired during the last quarter of 2007 and the ending inventory was ac quired during the last five months of 2008. Sales were made and purchases and other ex- enses were incurred evenly during the year