sert Draw Page Layout Formulas Data Review View A === dov Calibri (Body) - BIU 2 x V fx NAME: 11 A av A US Inc. has a foreign subsidiary TRANSCO. The functional currency for TRANSCO is the local currency where it is headquartered. Translate TRANSCO's statements as of December 31 2019 as shown below taking into account the following translation rates: REQUIRED: 1. Translate the Income Statement, Statement of Retained Earnings and Balance Sheet and prepare Computation of Translation Adjustment as of 12/31/2019 using the Current Rate Method in the appropriate areas provided below. 2. Then answer the "theoretical" quesiton shown below the Statement on Retained Earnings on the US Inc.'s "net investment exposure to foreign exchange risk. NOTER IN CERTAIN CELLS" US $ BALANCES HAVE BEEN PROVIDED - DO NOT CHANGE Key Rates - 1 Local Currency unit Rate when dividends declared on 10/1/2019 Rate at 12/31/2019 Average rate at 2019 0.76 0.78 0.75 Translate TRANSCO Income Statement & Statement of Retained Earnings TRANSCO Income Statement For Year Ending December 31, 2019 Translation Sales Cost of goods sold Gross profit Depreciation expense Other expenses Income before income taxes Income taxes Net Income Local 5,000,000 (4,000,000) 1,000,000 (200,000) (300,000) 500,000 (150.000) 350.000 Statement of Retained Earnings For Yes Ending December 31, 2019