Woodworkers Inc., an American company, established ownership in a subsidiary operating in Japan on 4 April 2003 by subscribing to shares in cash when the exchange rate was 13 to the $US. The balance sheet and income statement of the subsidiary for the year of 2009 follow: Income Statement * Sales Revenue 450,000 Cost of Goods Sold 360,000 Gross Profit 90,000 Other Expenses: Distribution Expense 2.000 3,000 5,000 5,000 13,000 Cleaning Expenses Supplies Expense Interest Expense Electricity Expense Insurance Expense Wages & Salaries Expense Depreciation Expense: Furniture & Fixtures Depreciation Expense: Buildings Depreciation Expense: Tools & Equipment 7,000 4,000 3,000 5.000 2,000 Net Profit 41,000 Balance Sheet * Assets Cash 57,000 Accounts Receivables 12.000 Notes Receivable 15,000 Inventory Buildings 40,000 180,000 Tools & Equipment 40,000 130,000 (15,000) (8,000) Furniture & Fixtures Accumulated Depreciation: Building Accumulated Depreciation: Furniture & Fixtures Accumulated Depreciation Equipment Total Net Assets Liabilities & Stockholders' Equity (10,000) 441,000 Liabilities: Notes Payable 30,000 Accounts Payable 15,000 Bonds Payable 55,000 Total Liabilities 100,000 Stockholders' Equity Share Capital +Retained Earnings 300,000 41,000 Total Stockholders' Equity Total Liabilities & Stockholders' Equity 341,000 441,000 Exchange Rates: to SUS 13 11 10 April 4 (when shares sold) Average for the year December 31 When Buildings and Furniture purchased When Land purchased When Equipment Purchased When Inventory Purchased 9 12 11 13 Required: a. Translate the financial statements of the Japanese subsidiary using Closing method b. Translate the financial statements of the Japanese subsidiary using Temporal method