Parent Company Acquired a Subsidiary in Germany in 2009

question 26

Essay

Parent Company acquired a subsidiary in Germany in 2009.The subsidiary's balance sheet is stated in euros.When Parent Company acquired the subsidiary in 2009,a euro was worth $1.35.When the subsidiary earned its income during 2009-2014,the average exchange rate was $1.32.On December 31,2014,a euro is worth $1.20.
At December 31,2014,the subsidiary's assets were 1,000,000 euros; the liabilities were 500,000 euros,common stock was 400,000 euros and retained earnings was 100,000 euros.
Required:
Translate the subsidiary's balance sheet into dollars.

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