Sonata Inc., a Scottish subsidiary of Universal Music, Inc., a U.S. company is preparing its Balance Sheet as of December 31, Year 1. As an Accountant of Sonata, Inc. you are required to translate the Balance Sheet to US Dollar. You must determine the correct exchange rate and the amount in US $.

Relevant data:

January 1, 2019	$1.75
Rate when PPE and LT debt incurred	$ 1.55
Rate when Patent acquired	$ 1.60
Average exchange rate Year 2019	$ 1.80
Rate 12/1/2019 when dividends declared	$ 1.40
Average exchange rate December 2019	$ 1.85
December 31, 2019	$ 1.90

	(in Euros)	Rate	(in US$
Cash	39,900
Accts Receivable	11,000
Inventory (FIFO)	6,500
PPE	75,000
Accum. Deprn- PPE	(2,000)
Patents (100,000-amort 0f 20T)	20,000
Amortization of Patents	(500)
Total Assets	149,900		253,085
Liabilities & Equity
Accounts Payable	16,000
Long-term Debts	20,000
Capital Stocks	100,000
Retained Earnings	13,900		9,685
Total Liabilities & Equity	149,900		253,085

Inventory (FIFO)

6,500

Answer 1

Amortization of Patents

(500)

Answer 2

Accounts Payable

16,000

Answer 3

Patents (100,000-amort 0f 20T)

20,000

Answer 4

Accum. Deprn- PPE

(2,000)

Answer 5

Accts Receivable

11,000

Answer 6

Cash

39,900

Answer 7

PPE

75,000

Answer 8

Long-term Debts

20,000

Answer 9

Capital Stocks

100,000