Required:

Translate the December 31, 2008, account balances of Lansing Company into dollars assuming that the pound is the TEMPORAL CURRENCY Lansing Company.

Dorsey Corporation purchased 90% of the common stock of Lansing Company on January 1, 2002. The cost of the investment was equal to the book value interest acquired. Lansing Company operates two retail stores and an exporting business in London that specializes in buying and selling British tweeds. The subsidiary provided the following financial statements in pounds to the parent company:

Lansing Company was incorporated on January 1, 2000, at which time all the property, plant, and equipment was purchased. The long-term notes were issued to partially finance the purchase of the fixed assets.

Direct exchange rates for the British pound are as follows:

January 1, 2000............................. $1.8996

January 1, 2002............................. 1.8365

Average for the last quarter 2007......... 1.5300

January 1, 2008................................ 1.4919

December 31, 2008........................... 1.4730

Average for 2008................................ 1.4788

Average for August-December 2008....... 1.4950

The January 1, 2008, retained earnings balance of Lansing in dollars was $1,593,408, and the cumulative translation adjustment was a debit balance of $939,898. The beginning inventory of 420,000 was acquired during the last quarter of 2007 and the ending inventory was acquired during the last five months of 2008. Sales were made and purchases and other expenses were incurred evenly during the year.