In January, 2016, Dudwil Corporation Acquired a Foreign Subsidiary, Holman

question 15

Essay

In January, 2016, Dudwil Corporation acquired a foreign subsidiary, Holman Company, by paying cash for all of the outstanding common stock of Holman.On the purchase date, Holman Company's accounts were stated fairly in local currency units (FC).Subsequent sales of Holman's common stock have been purchased by Dudwil to maintain its 100% ownership.
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Holman's trial balance, in functional currency units (same as the local currency units), on December 31, 2022, follows:
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$$\begin{array} { l r r } & \text { Debit } & \text { Credit } \\\text { Cash } & 58,400 & \\\text { Marketable securities } & 32,500 & \\\text { Accounts receivable (net) } & 51,370 & \\\text { Inventories } & 108,000 & \\\text { Surrender value of life insurance } & 7,200 & \\\text { Intangible assets } & 123,900 & \\\text { Property, plant, and equipment } & 636,000 & \\\text { Accumulated depreciation } & & 93,850 \\\text { Accounts payable } & & 74,000 \\\text { Accrued interest payable } & & 7,120 \\\text { Notes payable } & & 52,000 \\\text { Bonds payable } & & 80,000 \\\text { Capital stock } & & 83,000 \\\text { Paid-in capital in excess of par } & & 190,300 \\\text { Retained earnings } & & 390,400 \\\text { Sales } & 762,000 & \\\text { Cost of goods sold } & 7,120 & \\\text { Interest expense } & 39,350 & \\\text { Depreciation expense } & 3,100 & \\\text { Amortization expense--intangibles } & 84,230 & \\\text { Other expenses } & & 2,400 \\\text { Gain on sale of equipment } & & 3,800 \\\text { Interest income } & 1,913,170 & 1,913,170 \end{array}$$ The following additional information is available:
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Required:
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Prepare a schedule to translate the December 31, 2022, trial balance of Holman Company from local currency units to dollars.The schedule should show the trial balance in FCs, the exchange rates, and the trial balance.(Do not extend the trial balance to statement columns.Supporting schedules should be in good form.)

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