A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,000 to the subsidiary on account for $30,000 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994. How is the transaction gain or loss reported in the consolidated financial statements? B I U T₂ T² Ix !!! ΕΞ 問 99
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- Current Attempt in Progress A U.S. company owns an 80 % interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $23,900 to the subsidiary on account for $29,900 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994. (a1) Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit. (Round answers to 0 decimal places, e.g. 5.125.) Inventory Accounts Payable $A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,400 to the subsidiary on account for $30,000 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994. (a1) Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit. (Round answers to O decimal places, e.g. 5.125.) Inventory Accounts Payable $ $A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,000 to the subsidiary on account for $30,800 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994. Assuming that the transaction had been denominated in 47,004 Martian Credits rather than dollars, compute the transaction gain or loss that would be reported by the parent company.
- AUS. company owns an 80% interest in a company located on Mars, Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,900 to the subsidiary on account for $29,100 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year end was $0.4994, (a1) Your answer is correct. Compute the amounts that would be reported for the inventory and acce unts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit. (Round answers to O decimal places, eg. 5,125)View Policies Current Attempt in Progress AU.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $23,700 to the subsidiary on account for $29,400 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994. (c1) Assuming that the transaction had been denominated in 46,148 Martian Credits rather than dollars, compute the transaction gain or loss that would be reported by the parent company. (Round answers to O decimal places, e.g. 5,125.) Transaction $advanced accounting 405: A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,900 to the subsidiary on account for $29.100 when theexchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $04994. Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary’'s translated balance sheet.The entity’s functional currency is the Martian Credit. (Round answers to O decimal places, e.g. 5,125.) Inventory $ Accounts Payable $ please show calculations so I can learn!!!!
- Assume that Palm Company owns 100% of Wu Company which is located in China. Wu's functional currency is the U.S. dollar. On 1/1/X1, Wu Company acquired equipment for 100,000 yen when the exchange rate was $1.2 per yen. During year X1, Wu has recorded S-L depreciation of 10,000 yen based on a 10-year life. The 12/31/X1 exchange rate is $1.4 and the average exchange rate for the year was $1.3. Based on this information, Wu's depreciation expense should be reported at which of the following amounts on 12/31/X1?In order to demonstrate the use of the remeasurement process, assume that at the beginning of the year a U.S. parent company invested 100,000 foreign currency B (FCB) to form a 100% owned subsidiary.The subsidiary immediately invested the foreign currency in land at a cost of 50,000 FCB and inventory with a cost of 50,000 FCB. At midyear, 50% of the inventory was sold for 40,000 FCB. At year-end, assume that the sale is still uncollected. Although FCB is the subsidiary’s functional currency, the subsidiary maintains its books of record in foreign currency A (FCA). Assume the following exchange rates: Beginning of Year Mid Year End of Year1 FCB equals . . . . . . 12.5 FCA 8 FCA 10 FCA1 FCA equals. . . . . . 0.08 FCB 0.125 FCB 0.10 FCB1 FCA equals. . . . . . $0.20 $0.40 $0.301 FCB equals . . . . . . $2.50…On 12/20/20x1, Banana Company, a U.S.-based entity, acquired all of the outstanding common stock of Pooma Industries, which is located in Switzerland. The cost of acquiring Watermellon was 8.2 million Swiss francs. On the acquisition date, the U.S. dollar/Swiss franc exchange rate was $0.52 = SF1. The assets and liabilities acquired at 12/20/20x1 were: Assets Swiss Franc Liabilities and Equity Swiss Franc Cash 500,000 Notes Payable 1,270,500 Inventory 770,500 Shareholders' Equity 3,500,000 Property, plant and equipment 3,500,000 Total Assets $4,770,500 Total Liabilities and Shareholders’ Equity $4,770,500 At 12/31/20x1, Banana Company prepares its year-end financial statements. By 12/31/20x1, the U.S. dollar/Swiss franc exchange rate was $0.535 = SF1. For purposes of this problem, assume that after the 12/20/20x1, Watermellon Industries had no additional transactions that changed their financial position. Required…
- On 12/20/20x1, Sour Company, a U.S.-based entity, acquired all of the outstanding common stock of corn Industries, which is located in Switzerland. The cost of acquiring corn was 8.2 million Swiss francs. On the acquisition date, the U.S. dollar/Swiss franc exchange rate was $0.52 = SF1. The assets and liabilities acquired at 12/20/20x1 were: Assets Swiss Franc Liabilities and Equity Swiss Franc Cash 500,000 Notes Payable 1,270,500 Inventory 770,500 Shareholders' Equity 3,500,000 Property, plant and equipment 3,500,000 Total Assets $4,770,500 Total Liabilities and Shareholders’ Equity $4,770,500 At 12/31/20x1, Sour Company prepares its year-end financial statements. By 12/31/20x1, the U.S. dollar/Swiss franc exchange rate was $0.535 = SF1. For purposes of this problem, assume that after the 12/20/20x1, corn Industries had no additional transactions that changed their financial position. Required Determine the…A subsidiary of Reynolds Inc., a U.S. company, was located in a foreign country. The local currency of this subsidiary was the Euro (€) while the functional currency of this subsidiary was the U.S. dollar. The subsidiary acquired Equipment A on January 1, 2018, for €250,000. Depreciation expense associated with Equipment A was €25,000 per year. On January 1, 2020, the subsidiary acquired Equipment B for €150,000 and Equipment B had associated depreciation expense of €10,000. The subsidiary owned no other depreciable assets. Currency exchange rates between the U.S. dollar and the Euro were as follows: January 1, 2018 December 31, 2018. 2018 Average January 1, 2019 December 31, 2019 2019 Average January 1, 2020 December 31, 2020 2020 Average Multiple Choice O What amount would have been reported for depreciation expense related to the equipment owned by the subsidiary in Reynolds's consolidated balance sheet at December 31, 2018? O O O $29,500. $28,500. $30,000. $12,000. €1= $1.20 €1=…AU Co. acquired a fixed asset for $36,000 on November 1, 20x1 when the exchange rate was $1 = P23.00. At December 31, 20x1, the entity's year-end, the supplier of the fixed asset has not been paid and the exchange rate at that time was $1 = P25.00. On the December 31, 20x1 statement of financial position, what will be the values for the fixed asset and the creditor who was unpaid? On January 1, 20x6, the Riza Co. purchased equipment for P300,000. The equipment was being depreciated over an estimated life of 10 years on the straight-line method, with no estimated residual value. On December 31, 20x9, the equipment was sold for P200,000. The historical cost/constant peso statement of profit or loss prepared for the year ended December 31, 20x9 should include how much gain or loss from this sale?