Watson Company has a subsidiary in the country of Alonza where the local currency unit is the kamel (KM) On December 31, 2014, the subsidiary has the following balance sheet: Cash Inventory Land Building Accumulated depreciation KM 10,500 Notes payable (due 2016) KM 21,000 25,000 12,500 14,500 Common stock 6,000 Retained earnings 55,000 (27,500) KM 58,500 KM 58,500 The subsidiary acquired the inventory on August 1, 2014, and the land and buildings in 2000. It issued the common stock in 1998. During 2015, the following transactions took place 2015 Feb. 1 May 1 June 1 Aug. 1 Sept.1 Oct. 1 Nov. 1 Dec. 1 Dec. 31 Paid 9,500 KM on the note payable Sold entire inventory for 23,000 KM on account. Sold land for 7.400 KM cash Collected all accounts receivable Signed long-term note to receive 10,500 KM cash. Bought inventory for 13,500 KM cash Bought land for 6,000 KM on account. Declared and paid 3,600 KM cash dividend to parent. Recorded depreciation for the entire year of 2,750 KM