Task 4: Ali Salem Co. began operating a subsidiary in a foreign country on January 1, 2015 by acquiring all of the common stock for OMR 50,000, the local currency. This subsidiary immediately borrowed OMR 180.000 on a five-year note with nine percent interest payable annually beginning on January 1, 2015. A building was then purchased for OMR 200,000 on January 1, 2015. This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was immediately rented for three years to a group of local doctors for OMR 8,000 per month By year-end, payments totaling OMR 60,000 had been received. On October 1, OMR 6,000 were paid for a repair made on that date and it was the only transaction of this kind for the year. Jan 1 2015 OMR 1-$2.40 Oct 1, 2015 OMRI-S2.22 Average for 2015 OMR=$2.28 Dec 31 2015 OMRI-$2.16 A cash dividend of OMR 9,000 was transferred back to Ali Salem on December 31, 2015. The functional currency for the subsidiary was the (OMR), cash balance at 1 Jan 2015 was OMR 28,200. Currency exchange rates were as follows: Prepare an income statement for this subsidiary in and then translate these amounts into U.S. dollars. Prepare a statement of retained earnings for this subsidiary in and then translate the amounts into U.S. dollars. Prepare a balance sheet for this subsidiary in and then translate the amounts into U.S. dollars. (7.5 Marks)