Question No:1 A comparative balance sheet for Muscat Company is presented below (Under International Accounting Standards (IAS 17) and International Financial Reporting Standards (IFRS US GAAP) Muscat Company Comparative Balance Sheet 2019 2018 Assets Cash $_36.000 $ 31,000 Accounts receivable (net) 70,000 60,000 Prepaid insurance 25,000 17,000 Land 18,000 40,000 Equipment 70,000 60,000 Accumulated depreciation _(20.000 (13,000 Total Assets $199.000 $195.000 Liabilities and Stockholders' Equity Accounts payable $ 11,000 $ 6,000 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 21,000 55,000 Total liabilities and stockholders' equity $199.000 $195.000 Additional information: 1. Net loss for 2019 is $20,000. 2. Cash dividends of $14,000 were declared and paid in 2019. 3. Land was sold for cash at a loss of $4,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5. $22,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Instructions: Prepare a statement of cash flows for the year ended 2019, using the indirect method. Question No: 2 American Corporation, a US company, formed a British subsidiary on January 1, 2015 by investing 450,000 in exchange for all of the subsidiary's no-par common stock. The British subsidiary, London Corporation, purchased real property on April 1, 2015 at a cost of 500,000, with f100,000 allocated to land and 400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The British pound is London's corporation functional currency and its reporting currency. The British economy does not have high rates of inflation. Exchange rates for the pound on various dates were: January 01, 2015 = 1 = $1.50 April 01, 2015 = 1= $1.51 December 31, 2015 = 1 = $1.58 2015 average rate = 1 = $1.56 London's Corporation adjusted trial balance is presented below for the year ended December 31, 2015. In Pounds Debits: Cash 220,000 Accounts receivable 52,000 Inventory 59,000 Building 400,000 Land 100,000 Depreciation expense 7,500 Other expenses 110,000 Cost of goods sold 220,000 Total debits 1,168,500 Credits Accumulated depreciation Accounts payable Common stock Retained earnings Equity adjustment Sales revenue Total credits 7,500 111,000 450,000 600,000 1,168,500 Required: Prepare London's Corporation Financial Statement under Current Rate Method. 1. Translation working papers 2. Translated income statement, and 3. Translated balance sheet