required only b ( temporal method)

Multico (a US-based company) forms a wholly-owned subsidiary in Italy (Italco) on January 1, 2009. On that date, Multico invests in Italco when the exchange rate was 1.00-15. At December 31, the balance sheet and the income statement of Italco were as follows: Income Statement () Sales 8,000,000 Cost of goods sold 6,000,000 Gross profit 2,000,000 Selling and administrative expenses 825,000 Depreciation expense; Property Plant & 200,000 Equipment Depreciation expense, Building 20,000 Interest expense 180,000 Income before tax 775,000 Income tax expense 275,000 Net income 500,000 550,000 600,000 800,000 2,000,000 80,000 Balance Sheet ( Cach Accounts receivable Inventory Property, plant & equipment Building Accumulated depreciation Property Plant & Equipment Accumulated depreciation Building Total assets Accounts payable Long-term debt Total liabilities Capital stock Retained earnings (200,000) (20,000) 3,810,000 310,000 2,000,000 2.310,000 1,000,000 500,000 Total liabilities& capital 3,810,000 Relevant exchange rates were as follows: S per 0.98 0.95 When property, plant & equipment were purchased Average December 31 When ending inventory was purchased When building was purchased 0.90 0.91 0.97 Requirements: Translate the above statements into s using a. Closing rate method (Current Method) b. Temporal method