S3. Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2018...
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S3. Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2018 by acquiring all of the common stock for $50,000 Stickles, the local currency. This subsidiary immediately borrowed 8120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2019. A building was thern purchased for $170,000 on January 1,2018. This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was immediately rented for three years to a group of local doctors for $6,000 per month. By year-end, payments totaling $60,000 had been received. On October 1, $5,000 were paid for a repair made on that date and it was the only transaction of this kind for the year. A cash dividend of $6,000 was transferred back to Ginvold on December 31,2018. The functional currency for the subsidiary was the Stickle (S). Currency exchange rates were as follows: S1S 2.40 January 1, 2018 October 1, 2018 Average for 2018 December 31, 2018 1 = $ 2.28 s1S 2.16 31) Prepare a balance sheet for this subsidiary in stickles and then translate the amounts into U.S. dollars
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