Problem VI: Using the information provided in Problem V, use the temporal method instead of the current rate method. Instructions: Prepare the subsidiarys:

A. Translated workpapers (round to the nearest dollar)

B. Translated income statement

C. Translated balance sheet

Problem 5. Info needed.

Problem V: A U.S. Company acquired a subsidiary company in London on January 1, 2017 by buying all of the subsidiarys common stock. The subsidiary purchased the land for 650,000 pounds on November 22, 2014 and the building for 420,000 pounds on July 1, 2017. The building is being depreciated over a 30-year life by the straight-line method. The inventory is valued on a LIFO basis. The beginning inventory was 150,000 pounds. Purchase of inventory incurred evenly during the year. The British pound is the subsidiarys functional currency and its reporting currency and has not experienced any abnormal inflation. Exchange rates for the pound on various dates were:

11/22/2014 1 pound = $1.555

1/1/2017 1 pound = $1.350

7/1/2017 1 pound = $1.342

12/31/2017 1 pound = $1.368

2017 average rate 1 pound = $1.356

Dividends declared 10/20/2017 1 pound = $1.352

The subsidiarys adjusted trial balance is presented below for the year ended December 31, 2017.

Debits In Pounds Rates In U.S. $

Cash 125,000

Accounts receivable 68,000

Inventory 98,000

Land 650,000

Building 420,000

Depreciation expense 7,000

Cost of goods sold 475,550

Other expenses 195,000

Dividends declared 10/20/2017 32,200

Total debits 2,070,750

Credits '

Accumulated depreciation 7,000

Accounts payable 225,000

Accrued liabilities 212,750

Common stock 100,000

Retained earnings 530,000

Sales revenue 996,000

Total credits 2,070,75