Subsidiary Functional Currency is U.S. Dollar: Restate Trial Balances; Prepare Restated Fi- nancial Statements Cardinal Company, a U.S. company, acquired, at book value, an 80% interest in Blue Jay Company of France on January 1, 19X2, when the exchange rate for the French franc was $.12. On the date of acquisition, the book values of Blue Jay's assets and liabilities were equal to their fair values. The adjusted trial balance of Blue Jay Company, as of December 31, 19X4, is presented as follows: French Francs Credit Debit 65,000 100,000 Cash Accounts receivable Allowance for uncollectible accounts Inventory (FIFO), 12-31-X4 Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building Land Accounts payable Common stock Retained earnings, 1-1-X4 Dividends Sales Cost of goods sold Depreciation expense, equipment Depreciation expense, building Other expenses 15,000 180,000 300,000 160,000 900,000 450.000 200,000 320,000 500.000 215,000 60,000 600,000 250.000 35.000 90,000 80,000 2,260.000 2.260,000