Below you will find the balance sheet and income statement of a US Corp.'s foreign subsidiary at the end of its first year of operations. The following exchange rates were in effect during the period:
Jan. 1, 2005 - $1 = 1FC
Dec. 31, 2005 - $1.70 = 1FC
The average exchange rate during the period was $1.40=1FC. The common stock was issued on January 1, 2005.
Assuming that the foreign currency is the functional currency translate the financial statements into U.S. dollars.

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The Answer of Below you will find the balance sheet and income statement of a US Corp.'s foreign subsidiary at the end of its first year of operations. The following exchange rates were in effect during the period:
Jan. 1, 2005 - $1 = 1FC
Dec. 31, 2005 - $1.70 = 1FC
The average exchange rate during the period was $1.40=1FC. The common stock was issued on January 1, 2005.
Assuming that the foreign currency is the functional currency translate the financial statements into U.S. dollars.

Below You Will Find the Balance Sheet and Income Statement