In January, 20X3, Dudwil Corporation Acquired a Foreign Subsidiary, Holman

In January, 20X3, 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.
Holman's trial balance, in functional currency units (same as the local currency units), on December 31, 20X7, follows:
The following additional information is available:
a.
Holman uses the LIFO inventory method to account for its inventory. Purchases took place uniformly throughout 20X7. There were no intercompany sales during 20X7.
b.
During 20X7, Holman declared and paid a dividend of 7,000 FCs at the end of each calendar quarter.
c.
The balances in the contributed capital accounts result from the following transactions:

Paid-in Capital
Date
Capital Stock
in Excess of Par
January 1, 20X3, issuance
40,000
FC
80,000
FC
June 30, 20X5, issuance
40,000
104,300
January 1, 20X6, issuance
10,000
20,000
August 1, 20X6, retirement
(7,000)
(14,000)
83,000
FC
190,300
FC
The August 1, 20X6, retirement of stock involves stock originally issued on January 1, 20X3.
d.
The December 31, 20X6, retained earnings balance of 418,400 FC, translated into dollars, is $179,460.
e.
Selected translation rates are as follows:
Paid-in Capital
Date
Capital Stock
in Excess of Par
January 1, 20X3, issuance
40,000
FC
80,000
FC
June 30, 20X5, issuance
40,000
104,300
January 1, 20X6, issuance
10,000
20,000
August 1, 20X6, retirement
(7,000)
(14,000)
83,000
FC
190,300
FC

Date
1 FC equal to
January 1, 20X3
$0.30
20X3 average
0.32
20X4 average
0.38
February 1, 20X5
0.42
June 30, 20X5
0.45
20X5 average
0.45
January 1, 20X6
0.50
February 1, 20X6
0.52
August 1, 20X6
0.60
December 31, 20X6
0.61
20X6 average
0.56
March 31, 20X7
0.63
June 30, 20X7
0.66
September 30, 20X7
0.70
December 31, 20X7
0.75
20X7 average
0.70
Required:
Prepare a schedule to translate the December 31, 20X7, 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.)