Q16. Sur Corporation, a Mexican affiliate of a major U.S.-based hotel chain, starts the calendar year with 500 million pesos (MXP) cash equity investment. It immediately acquires a refurbished hotel in Acapulco for MXP 450 million. Owing to a favourable tourist season, Sur Corporation's rental revenues were MXP 72 million for the year. Operating expenses of MXP 43,200,000 together with rental revenues were incurred uniformly throughout the year. The building, comprising 80 percent of the original purchase price (balance attributed to land), has an estimated useful life of 20 years and is being depreciated in straight-line fashion. By year-end, the Mexican consumer price index rose to 210 from an initial level of 130, averaging 160 during the year.

Required:

Prepare financial statements for Sur Corporation's first year of operations in terms of the historical-cost model and the historical-cost constant dollar model.