Translation and Consolidation of Foreign Operation On January 1, 20X3, PCA Co. (a Canadian company) purchased 80% of SUS Co. (a U.S. company) at a cost of US$50,000. The book values of SUS Co.'s net assets were equal to fair market values on this date except for the building, which had an FMV of US$65,000 and a remaining useful life of 10 years. Because of a scandal involving one of the company's employees, the company received significant bad press and the year-end goodwill impairment test resulted in a US$1,034 goodwill impairment loss. (Assume all amounts in this example are in thousands.) The balance sheet of SUS in U.S. dollars on January 1, 20X3, is as follows: SUS Co. Balance Sheet as at January 1, 20X3 Cash and accounts receivable Inventory Building (net) Total assets Current liabilities Bonds payable Total liabilities Common shares US$20,000 5,000 55,000 US$ 80.000 US$18,000 25,000 43,000 10,000 Retained earnings Total liabilities and shareholders' equity The following exchange rates were in effect during 20X3: January 1, 20X3 Average for 20X3 December 15, 20X3 December 31, 20X3 US$1 = $1.40 US$1 $1.38 US$1 = $1.41 US$1-$1.39 27,000 US$ 80,000