Faberge Co. began operating a subsidiary in a foreign country on January 1, 2008 by acquiring all of the common stock for 50,000.

Faberge Co. began operating a subsidiary in a foreign country on January 1, 2008 by acquiring all of the common stock for §50,000. This subsidiary immediately borrowed §120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2008. A building was then purchased for §170,000. 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 made. On October 1, §5,000 were paid for a repair made on that date. A cash dividend of §6,000 was transferred back to Faberge on December 31, 2008. The functional currency for the subsidiary was the stickle. Currency exchange rates were as follows: Prepare a balance sheet for this subsidiary in stickles and then translate these amounts into U.S. dollars.