Renta USA, Inc formed a foreign subsidiary on January 1, 2016; the subsidiary issued 15,000 of its no-par 10FC stock to Renta. The subsidiary's books are kept in their functional currency

Income earned in 2016 and 2017 totaled 100,000 FC and 120,000 FC, respectively. Dividends of 40,000 FC have been paid on December 31 of each year. In addition, 1,000 shares of common stock (no par) were issued on July 1, 2017 for 20 FC each. Exchange rates relating this foreign currency to U.S. dollars are as follows: January 1, 2016 1.00 December 31, 2016 1.04 Average 2016 1.02 July 1, 2017 1.05 December 31, 2017 1.10 Average 2017 1.08 Required: Calculate the owners' equity of the subsidiary on December 31, 2017 .

Common Stock:

150,000 ´ 1.00 $150,000
20,000 ´ 1.05 21,000
Total $171,000

Retained Earnings:

Net Income Dividends
100,000 ´ 1.02 = 102,000 40,000 ´ 1.04 = $41,600
120,000 ´ 1.08 = 129,600 40,000 ´ 1.10 = 44,000
Total $231,600 Total $85,600

Retained earnings = $231,600 - $85,600 = $146,000

Common Stock $171,000
Retained Earnings 146,000
Total Owner's Equity $317,000