You work for an American company that has a branch in Italy. The functional currency of thesubsidiary is Euro. The companys total assets and total liabilities as at 31 December 2017 areEUR 200 million and EUR 140 million. Common stock is worth EUR 20 million (equivalent to USD 25 million when it was raised) and the rest represents retained earnings. USD equivalent balance of retained earnings was USD 32 million last year. Net income for the year is EUR 15 million which is earned equally throughout the year. Average exchange rate that prevailed overthe year was 0.82/$ and the closing exchange rate is 0.85/$

Translate all listed accounts using the Current method

Item	Euro in millions	Exchange Rate	USD in millions	Calculation
Assets	200
Liabilities	140
Common Stock	20
Retained Earnings	40
Foreign exchange reserve	0
Total liabilities plus equity	200
Net income	15