Problem 5 On January 1, 2017, a US. company purchased 100% of the outstanding stock of Ventana Grans, a comp any located in Latz City, New Zealand. Ventana Grains was organized on January 1, 2003. All the property, plant, and equipment held on January 1, 2017, was acquired when the company was organized. The business combination was accounted for as a purchase transaction. The 2017 financial statements for Ventana Grains, prepared in its local currency, the New Zealand dollar, are given here VENTANA GRAINS Comparative Balance Sheets January 1 and December 31, 2017 Cash and Receivables Inventories Land Buildings (net) Equipment (net) Totals Assets Jan. 1 Dec. 31 500,000 880,000 600,000 500,000 400,000 400,000 650,000 605,000 465,000 470,000 2,615,000 2,855,000 Jan. 1 Dec. 31 295,000 210,000 Short-Term Accounts and Notes Long-Term Notes (600,000 issued 9/1/2013, 80,000 issued 7/1/2017) Common Stock Additional Paid-in Capital Retained Earnings Total Liabilities and Equity 600,000 680,000 800,000 800,000 200,000 200,000 720,000 965,000 2,615,000 2,855,000 VENTANA GRAINS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2017 3,225,000 Revenues Cost of Goods Sold: Beginning Inventory Purchases Goods Available for Sale Less: Ending Inventory Cost of Goods Sold Gross Profit on Sales Depreciation Expense 600,000 2,100,000 2,700,000 500,000 2,200,000 1,025,000 140,000