On January 1, 2020, Indigo Sports, a US based Parent company, purchased a 100% interest in Sentaro Company, a subdivision located in Dubai, UAE. The acquisition was treated as a purchase transaction. The 2020 financial statements stated in UAE Dirhams (AED) are given below: Sentaro Company Comparative Balance Sheets January 1 and December 31, 2020 January 1, December 31, 2020 2020 Cash and Receivables 24,000 26,000 Supplies 1,000 500 Net Property. Plant and Equipment 52.500 49.000 Totals 77.500 75,500 Accounts Payable Long-Term Notes Payable Common Stock Retained Earnings Totals 11,500 19,000 30,000 17.000 77,500 5,500 11,000 30,000 29,000 75,500 Sentaro Company Consolidated Income and Retained Earnings Statement For the Year Ended December 31, 2020 Revenues Operating Expenses Net Income Dividends declared and Paid on December 31, 2020 Increase in Retained Earnings Retained Earnings 17,000 Totals 77,500 30000 15000 15000 3000 12000 29,000 75,500 Sentaro Company Consolidated Income and Retained Earnings Statement For the Year Ended December 31, 2020 Revenues Operating Expenses Net Income Dividends declared and Paid on December 31, 2020 Increase in Retained Earnings 30000 15000 15000 3000 12000 Direct Exchange rates for UAE Dirhams (AED) are as follows: Dollars per AED January 1, 2020 $0.22 Average for the $0.19 year December 31, $0.18 2020
