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Watson Company has a subsidiary in the country of Alonza where the local currency unit is the kamel (KM). On December 31, 2014, the subsidiary has the following balance sheet Cash KM 30,000 26,000 13,000 KM 13,500 Notes payable (due 2016) 25,000 Common stock Inventory Land 8,000 Retained earnings 45,000 (22,500) KM 69,000 ul Accumulated depreciation KM 69,000 The subsidiary acquired the inventory on August 1, 2014, and the land and buildings in 2000. It issued the common stock in 1998. During 2015, the following transactions took place 2015 Feb. 1 Paid 17,500 KM on the note payable May 1 Sold entire inventory for 34,000 KM on account June 1 Sold land for 9,500 KM cash Aug. 1 Collected all accounts receivable Sept1 Signed long-term note to receive 12,000 KM cash. Oct. 1 Bought inventory for 15,500 KM cash Nov. 1 Bought land for 8,000 KM on account Dec. 1 Declared and paid 2,400 KM cash dividend to parent Dec. 31 Recorded depreciation for the entire year of 2,500 KM The exchange rates for 1 KM are as follows 1998 2000 1.201 2014 August 1, 2014 December 31, 2014 February 1, 2015 May 1, 2015 June 1, 2015 August 1, 2015 September 1, 2015 October 1, 2015 November 1 201 5 December 1, 2015 December 31, 2015 Average for 2015 1KM = $0.26 10.24 1 0.34 1 = 0.36 10.38 1 = 0.40 1 = 0.42 1 = 0.44 1 = 0.46 1 = 0.48 1 = 0.50 1 = 0.52 1 = 0.56 1 = 0.46