Translation -Local Currency Is the Functional Currency LO On January 1, 2014, a U.S. company purchased 100% of the outstanding stock of Ventana Grains, a company located in Latz City, New Zealand. Ventana Grains was organized on January 1, 2000. All the property, plant, and equipment held on January 1, 2014, was acquired when the company was organized. The business combination was accounted for as a purchase transaction. The 2014 financial statements for Ventana Grains, prepared in its local currency, the New Zealand dollar, are given here M 13-1 VENTANA GRAINS Comparative Balance Sheets January 1 and December 31, 2014 Cash and Receivables Inventories Land Buildings (net) Equipment (net) Jan. 1 500,000 600,000 400,000 650,000 465,000 2.615.000 295,000 Dec. 31 880,000 500,000 400,000 605,000 470,000 2,615,0002.85000 210,000 Totals Short-Term Accounts and Notes Long-Term Notes (600,000 issued September 1, 2006, 80,000 issued July 1, 2014) Common Stock Additional Paid-in Capital Retained Earnings 600,000 800,000 200,000 720,000 2,615,000 680,000 800,000 200,000 965,000 2,855,000 Total