Use the following fact pattern to answer Questions 27 through 33: Assume Parent Company, a US corporation, owns a subsidiary operating in Switzerland. The subsidiary has adopted the Swiss Franc (CHF) as its functional currency. The following are the subsidiary's financial statements (in CHF) for the most recent year: CHF Income Statement: Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 768,420 626,400 804,600 588,240 1,080,000 (540,000) 720,000 (360,000) 3,687,660 Net income CHF Balance Sheet: 2,700,000 Assets: (1,620,000) Cash 1,080,000 Accounts receivable (net) (576,000) Inventory (126,000) Land Building 378,000 Less: Accumulated Depreciation Equipment Less: Accumulated Depreciation 1,417,500 Total Assets 378,000 (37,800) Liabilities and Stockholders's Equity: 1,757,700 Current Liabilities Long-term Liabilities Common Stock Additional Paid-in Capital Retained Earnings Total Liabilities and Equity Retained Earnings Statement: Retained Earnings, Beginning Net Income (from above) Dividends Retained Earnings, Ending 457,920 1,067,040 180,000 225,000 1,757,700 3,687,660 A few items translated are given the value of Retained Earnings, beginning translated into US dollars is $469,350; also, cost of goods sold translated into US dollars is $1,148,490. In addition, depreciation on the building for the year was CHF 54,000 and CHF 72,000 for the equipment. Below are the relevant exchange rates for the $US value of the Swiss Franc (CHF) as follows: January 1 December 31 Average rate Dividend rate Land historical rate Building historical rate Equipment historical rate Common stock historical rate $0.70 $0.90 $0.80 $0.87 $0.45 $0.45 $0.55 $0.30 27. Assuming the firm uses the temporal method, how much is depreciation expense for the year in US dollars? A. $24,300. B. $63,900. C. $126,000. D. $139,400. 28. Assuming the firm uses the temporal method, how much is net income for the year in US dollars? A. $526,410. B. $486.810. C. $430,218. D. Other amount not shown. 29. Assuming the firm uses the temporal method, how much is ending retained earnings in US dollars? A. $1,191,222. B. $1,287,414. C. $1,581,930. D. Other amount not shown. 30. Assuming the firm uses the temporal method, how much is book value of the land in US dollars? A. $705,700. B. $264,708. C. $588,240. D. Other amount not shown. 31. Assuming the firm uses the current rate method, how much is the book value of the building in US dollars? A. $486,000. B. $432,000. C. $972,000. D. Other amount not shown. 32. Assuming the firm uses the current rate method, how much are dividends in US dollars? A. $32,200. B. $32.886. C. $30.240. D. $34,020. 33. Assuming the firm uses the temporal method, how much are dividends in US dollars? A. $32,200. B. $32.886. C. $30,500. D. $34,020