Chapter 8, Problem 35P

a.

To determine

Translate the subsidiary's income statement, retained earnings statement, balance sheet,

statement of cash flows into $US.

b.

To determine

Compute the ending Cumulative Translation Adjustment and also prepare the required journal entries made by the parent as a result of this computation.

c.

To determine

i.    Compute the equity investment account balance on the balance sheet for the parent’s company.

ii.    Compute the equity income reported by the parent in its income statement.

iii.    Prepare the consolidation spreadsheet for the year by using the translated subsidiary financial statements and the parent’s financial data.