What is the difference between downstream sales and upstream sales? (5 Points) What are the rates that used to translate the following accounts according to the temporal method? Accounts Rate Monetary assets and liabilities (cash, AR, AP) Assets and liabilities carried at current values. Revenues and expenses related to assets and liabilities translated at historical rates Other revenues and expenses (Related to assets) Income statement expenses except above Ending inventory (valued at cost) Plant Assets Capital & additional paid in capital Dividends Question 2: (16 points) B1, C1, and C3 Part A: 8 Points At the beginning of 2016 Hassan Company sold a land to Ali Company at $90,000. The land originally costs $70,000. During 2018, Ali Company sold the land at $100,000. Net income for Ali Company 2016-2018:$100,000; $100,000 and $100,000 respectively. Instructions: 1. Journalize the above transactions in Parent Company (Hassan) records and in the Subsidiary Company (Ali) records. The acquisition rate was 80%. Parent Co. 1/1/2016 Subsidiary Co. 1/1/2016 2. Calculate the Parent company from the subsidiary's net income. (80%) 3. Calculate the Minority interest from the subsidiary's net income. (20%) 4. Prepare the working paper in Journal entries format for 2016 - 2018. 2016 2017 2018 Part B: 8 Points The following transactions pertains to Reem Merchandising Company: 1. The company shipped merchandise to Amwaj branch costs $80,000 2. Land was acquired by Amwaj Branch for $30,000 to be carried in home office accounting records. 3. Amwaj branch purchase $70,000 of merchandise from supplier on account 4. Amwaj branch paid $25,000 form Reem account payable balance 5. The company paid $15,000 cash on behalf of the branch to the supplier Instructions: Prepare the journal entries on Reem Company records only Question 3: (14 points) B1, C1, and C3 At the beginning of 2019 XYZ Company purchased ABC Company at the date of the acquisition the following balance sheet was found in USA dollars. Instructions: Translate the following balance sheet from U.S Dollars to BD at the date of acquisition using current method of 2019: Account USAS Cash 35,000 AR 125,000 Inventories 170,000 Equipment 80,000 -) Accumulated depreciation (20,000) Total Assets 390,000 90,000 Common Stock 200,000 Additional paid in capital 60,000 RE 40,000 Total liabilities and O. E 390,000 BD per Direct exchange rates for Dollars are: Dollars January 1, 2019 December 31, 2019 Average for 2019 Dividend declaration and payment date 0.361 BD 0.36 0.372 0.363