Topic: Consolidation eliminating entries for international subsidiary, translation, first year On January 1, 2024, a U.S. parent paid KYD 1,500,000 to acquire a subsidiary in the Cayman Islands. The excess paid over book value, KYD 700,000, was attributed entirely to goodwill, which is not impaired. The subsidiary's functional currency is the Cayman Islands dollar, and the subsidiary's translated trial balance at December 31, 2024 is below, in U.S. dollars. b. Required Cash & receivables Inventories, at cost Buildings & equipment, net Accounts and notes payable Capital stock Retained earnings, beginning Exchange rates ($/KYD) are: a. Sales revenue Cost of goods sold Operating expenses Translation gain (OCI) January 1, 2024 Average for 2024 December 31, 2024 Dr (Cr) $ 104,000 650,000 3,900,000 (3,510,000) (120,000) (840,000) (7,000,000) 4,500,000 2,400,000 (84,000) $ $1.20 1.25 1.30 0 Calculate the December 31, 2024 balance for the parent's investment in subsidiary, on its own books. The parent uses the complete equity method to report its investment. Prepare eliminating entries (C), (E) and (R), to consolidate the trial balances of the parent and its subsidiary at December 31, 2024.

Consolidation eliminating entries for international subsidiary, translation, first year On January 1, 2024, a U.S. parent paid KYD 1,500,000 to acquire a subsidiary in the Cayman Islands. The excess paid over book value, KYD 700,000 , was attributed entirely to goodwill, which is not impaired. The subsidiary's functional currency is the Cayman Istands dollar, and the subsidiary's translated trial balance at December 31,2024 is below, in U.S. dollars. Exchange rates (\$/KYD) are: Required a. Calculate the December 31, 2024 balance for the parent's investment in subsidiary, on its own books. The parent uses the complete equity method to report its investment. b. Prepare eliminating entries (C), (E) and (A), to consolidate the trial balances of the parent and its subsidiary at December 31, 2024