Option C is the correct Answer.
As per SIC-30 , enterprise translates the financial statements from a measurement currency to a presentation currency. In hyperinflationary economy, the requirements of SIC-19.9 are
please i need answer for this asap thank youuuu the functional currency is the local currency...
If the functional currency is the local currency of a foreign subsidiary. what exchange rates should be used to translate the hyperinflation over three years? below a geforeg days in a country which has not expenenced option c Option Oo oo Opeon O Option A
If the functional currency is the local currency of a foreign subsidiary, what exchange rates should be used to translate the ems below assuming the foreign subsidiary is in a country which has not experienced hyperation over three years? Inventories Depreciation Expense- ipment Equipment Current Rate Historical Rate D) Average Rate Mile Choice 0 0 0 0
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 72,000 pounds. The subsidiary immediately borrowed 148,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 220,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2020, the subsidiary...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 63,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 223,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary...
Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 30,800 dinars accounts receivable of 82,500 dinars, and land that cost 225,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 175,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 145,000 dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a...
Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 25,200 dinars accounts receivable of 81,400 dinars, and land that cost 214,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 164,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 134,000 dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a...
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales Inventory (bought on 3/1/17) Equipment (bought on 1/1/16) Rent expense Dividends (declared on 10/1/17) Notes receivable (to be collected in 2020) Accumulated depreciation-equipment Salary payable Depreciation expense KQ 300,000 165,000 80,000 20,000 28,000 46,000 24,000 7,000 8,000 The following U.S.$ per KQ exchange rates...
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency:Sales $ 200,000.00Inventory (bought on 3/1/17) $ 100,000.00Equipment (bought on 1/1/16) $ 80,000.00Rent expense $ 10,000.00Dividends (declared on 10/1/17) $ 20,000.00Notes receivable (to be collected in 2020) $ 30,000.00Accumulated depreciation—equipment $ 24,000.00Salary payable $ 5,000.00Depreciation expense $ 8,000.00 The following U.S.$ per KQ exchange rates are applicable:1-Jan-16 $ 0.13Average for...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 96,000 pounds. The subsidiary immediately borrowed 230,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 326,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 201, the subsidiary...
Existing Subsidiary—Translation (see related
P7.2) Refer to the information in P7.2 and assume
SuperValu’s functional currency is the krona.
Exchange rates in 2019 were:
Translate SuperValu’s 2019 ending trial balance into U.S.
Dollars. Include a schedule calculating the 2019 translation gain
or loss, appearing in other comprehensive income tax 2019.
Dr (Cr) Account Balances December 31 January 1 Cash.................... Accounts receivable, net .. Plant and equipment, net .... Accounts payable......... Notes payable............ Capital stock........ Retained earnings, January Sales.... Depreciation expense......