QUESTION 1

1. Larsen Co is an Norwegian subsidiary of Smith & Co USA.

   Restate the subsidiary financial statements into the parent companys reporting currency of USD using translation. The relevant exchange rates are listed below.

   Exchange Rate:
   Current	$0.12
   Historical	$0.11	Assume all nonmonetary items were generated on the same day.
   Average	$0.16

   Your answers should be either a numerical amount or a single letter that represents a word.

   Round your answers to the nearest whole currency unit. For example, 3.456 is rounded to 3 and 4.567 is rounded to 5. 

   Do not leave any cells blank --- enter N/A if nothing is needed in the cell. 

   	Krone	USD
   Income Statement
   Sales	12,000,000
   COGS	(9,300,000)
   SG&A Expense	(1,659,000)
   Depreciation Expense	(128,000)
   Interest Expense	(53,000)
   Foreign Exchange Gain	38,000
   Remeasurement Gain/Loss			Is it a Remeasurement Gain (G) or Loss (L)?
   Net Income/Loss	898,000