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S. Lopez Enterprises is a publicly-traded U.S. corporation that has 100% ownership interest in two companies located in Mexico. Both subsidiaries maintain their accounting records in the Mexican peso.

At December 31, 2020, S. Lopez Enterprises must convert the financial statements for the subsidiaries to U.S. dollars prior to consolidation.

Here are the exchange rates relevant to the conversion of the financial statements of both subsidiaries:

	$ per MXN
Historical rate for plant assets and equity	$ 0.085
Historical rate for beginning inventory	$ 0.088
Weighted-average rate for 2020	$ 0.090
Current rate at December 31, 2020	$ 0.092

Presented below are summarized versions of the financial statements of Camino Grande Ltd. that have been partially-converted to U. S. dollars. Use the remeasurement method to complete the conversion of the financial statements of Camino Grande Ltd.

• Enter the appropriate amounts in each unshaded box.
• Provide supporting calculations in the box in the right column.
• Refer back to the source of amounts that carry over from one statement to another
• One of the unshaded boxes pertains to an item that is not applicable under the remeasurement method and therefore will NOT contain a value. (14 points)

Statement of Financial Position at December 31, 2020:	Mexican Pesos	U.S. Dollars	Calculations
Total Assets	72,725,540	$6,412,340
Total Liabilities	40,237,305	$3,598,830
Common Stock	20,520,000	$1,744,200
Retained Earnings	11,968,235
Accumulated Other Comprehensive Income (Loss),if any	-0-
Total Equity	32,488,235

Statement of Retained Earnings for the year ended December 31, 2020:	Mexican Pesos	U.S. Dollars	Calculations
Retained Earnings, January 1, 2020	7,125,810	$624,740
Net Earnings	10,942,425
Dividends Declared	(6,000,000)	(540,000)
Retained Earnings, December 31, 2020	11,968,235
Income Statement for the year ended December 31, 2020:	Mexican Pesos	U.S. Dollars	Calculations
Net Earnings Before Exchange Gain (Loss),if any	10,942,425	$962,455
Exchange Gain (Loss),if any	-0-
Net Earnings	10,942,425

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