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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Definitions:

Res Ipsa Loquitur

A legal doctrine that suggests negligence is inferred from the very nature of an accident or injury, in the absence of direct evidence.

Burden Of Proof

The duty of the plaintiff or prosecution to establish a claim or allegation by admissible evidence and to prove that the defendant committed all the essential elements of the crime to the jury’s or court’s satisfaction beyond any reasonable doubt, in order to convict the defendant.

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious wrongdoing.

Outrageous

Behavior or actions that are shocking because they are so wrong, unusual, or out of the ordinary.