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Translation using Current Rate Method (Cruzeiro is Functional currency) Gramado Company was created as wholly...

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Accounting

Translation using Current Rate Method (Cruzeiro is Functional currency) Gramado Company was created as wholly owned subsidiary of Porto Alegre
Corporation on January 1, Year 1. On that date, Porto Alegre invested $42,000 in Gramado's capital stock.
Other than the capital investment on January 1, there were no
transactionsinvolvingstockholders'equityinYear1.Dividendsdeclaredandpaidon1201?Y220000
The cruzeiro is the primary currency that Gramado uses in its day-to-day operations. The cruzeiro
has steadily fallen in value against the dollar since Porto Alegre made the investment in Gramado
in Year 1. Relevant exchange rates for the cruzeiro for Year 1 and 2 follow below.
Required: Translate Gramado Company's Year 2 financial statements into dol.
Cramado's cruzeiro-denominated financial statements for Year 2 are as follows:
Use for Retained Earnings Beg Balance
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