Please complete scenario B and show work:

Required you are required to submit all documentation (i.e. balance sheet and income statement for each scenario, all supporting schedules for each scenario--including the Calculation of Translation Adjustment, Calculation of Remeasurement Gain/Loss, and the accompanying inventory schedules and depreciation schedules).

Part 1. Translate UDCs financial statements into U.S. Dollars ($) in accordance with U.S. GAAP at December 31, Year 3. Each Scenario will require its own sets of financial statements translated into ($). Include all financial statements as well as all supporting documentation required to complete the financial statements.

The January 1, Year 3, beginning inventory of 5,478,125 was purchased evenly throughout the last 6 months of Year 2. Purchases of inventory during Year 3 were acquired uniformly throughout year 3. The December 31, Year 3, ending inventory was acquired evenly throughout the last 6 months of Year 3. Inventory is held at cost. All fixed assets were purchased based on the following schedules: o A basket purchase of 27,000,000. This purchase was a building (#1) for 23,000,000 and Land for 4,000,000 on January 1, Year 1. o You built a second building for the price of 3,000,000 on February 1, Year 2. This is located on the same parcel of land as building #1. o basket purchase of 6,467,000. This purchase was a piece of land for 500,000 and a building (#3) for 5,967,000 on February 14, Year 3 o an equipment purchase of 10,000,000 on January 1, Year 1 o an equipment purchase of 6,042,000 on March 1, Year 3 The Utes have a corporate policy of depreciating Equipment on a straight-line basis over 7 years. Buildings are depreciated on a straight-line basis over 20 years. The Utes corporate policy of depreciation also states that a full years depreciation is taken in the year of acquisition. Dividends were declared and paid on December 31, Year 3.

Scenario B: Assume the U.S. Dollar is the functional currency of UDC (which is not UDCs reporting currency). The December 31, Year 2, retained earnings that appeared in Utes re-measured financial statements were $2,802,020.

On January 1, Year 1 Utes acquired a 100% interest in UDC. You issued equity (common stock and APIC) on January 1, Year 1.

The Utes are enjoying their new investment and it is time, once again, to consolidate and translate the financial statements from their Planet Swoop operations, UDC. The financial statements of UDC as of December 31, Year 3 are as follows:

f Salee 33.000,000 Cost of goods sold -21,700,000 Depreciation expenae-equipment -2.291.714 Duprecialion expese-buildirg 1,598,350 -1,3, Research and rdeveopment expense Other exponcoe (including taxee) -1,150,000 Net income 4,529.936 Plus: Retained earnings, 1/1/Y3 G,520,402 -1.000,000 10,056.418 Le33: Dvidends paid Retained earnings, 12/31/Y3 Cash 9,723,375 Auuounts recuivablu (u) 3,500,000 Inventory 10,6,2 Equiprment 16,042,000 Iasa: ancumunted depracintinn 5,148,A57 Buikdinn 31,987,000 Leas: accumulated depreciation 4.048,350 Lard 4,500,000 Total asseta 67.491.418 Accounta payable 5,435,000 Long-term Note Payable 21,500,000 Common ctock 500,000 30,000,000 Additional paid-in capital Retained earninge 10,056.118 Cumulative I rans lation Adjustment. Total 67.191.118 Exchange Rates for year 1 January 1, Year 1 0.36 Weighted average for year 1 0.3755 Average for Q4 0.39 0.41 12/31/Y1 Exchange Rates for Year 2 January 1, Year 2 February 1, Year 2 0.41 0.44 Weighted average for Year 2 0.47 age for last 6 months of year 2 0.4756 12/31/y2 0.49 Exchange Rates for Year 3 January 1, Year 3 0.49 February 14, Year 3 0.48 March 1, Year 3 0.47 Weighted average for Year 3 0.472 age for last 6 months of year 3 0.46 12/31/y3 0.45 f Salee 33.000,000 Cost of goods sold -21,700,000 Depreciation expenae-equipment -2.291.714 Duprecialion expese-buildirg 1,598,350 -1,3, Research and rdeveopment expense Other exponcoe (including taxee) -1,150,000 Net income 4,529.936 Plus: Retained earnings, 1/1/Y3 G,520,402 -1.000,000 10,056.418 Le33: Dvidends paid Retained earnings, 12/31/Y3 Cash 9,723,375 Auuounts recuivablu (u) 3,500,000 Inventory 10,6,2 Equiprment 16,042,000 Iasa: ancumunted depracintinn 5,148,A57 Buikdinn 31,987,000 Leas: accumulated depreciation 4.048,350 Lard 4,500,000 Total asseta 67.491.418 Accounta payable 5,435,000 Long-term Note Payable 21,500,000 Common ctock 500,000 30,000,000 Additional paid-in capital Retained earninge 10,056.118 Cumulative I rans lation Adjustment. Total 67.191.118 Exchange Rates for year 1 January 1, Year 1 0.36 Weighted average for year 1 0.3755 Average for Q4 0.39 0.41 12/31/Y1 Exchange Rates for Year 2 January 1, Year 2 February 1, Year 2 0.41 0.44 Weighted average for Year 2 0.47 age for last 6 months of year 2 0.4756 12/31/y2 0.49 Exchange Rates for Year 3 January 1, Year 3 0.49 February 14, Year 3 0.48 March 1, Year 3 0.47 Weighted average for Year 3 0.472 age for last 6 months of year 3 0.46 12/31/y3 0.45