Question

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 114,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year. Currency exchange rates for 1 dinar follow April 1, 2016 January 1, 20117 May 1, 2017 June 1, 2017 December 31, 2017 $0.47 1 dinar 0.50 1 0.51-1 0.53 1 0.551 a. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume b. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume c. Assume that Zugar is a foreign subsidiary of a U.S. multinational company. On the December 31, 2017, balance sheet, what is the also that the dinar is the subsidiary's functional currency. What is the translation adjustment for this subsidiary for the year 2017? also that the U.S. dollar is the subsidiary's functional currency. What is the remeasurement gain or loss for 2017? translated value of the Land account? On the December 31, 2017, balance sheet, what is the remeasured value of the Land account? (Input all amounts as positive.) translation adjustment remeasurement a. c. Translated value of land Remeasured value of land

Answer 1

Detail	Amount ( In Dinnar	Exchange Rate ( 1 Dinnar= S	Amount (In Dollar)
Net Asset
Cash	25,200
Account Receivable	81,400
Land	214,000
Less: Note Payable	(164,000)
Net Asset as on 01/01/2017	156,600	0.50	78,300
Add: Cash Received on 01/05/2017	134,000	0.51	68,340
Less: Cash Paid on 01/06/2017	(114,000)	0.53	(60,420)
Net Asset	176,600		86,220
Net Asset as on 31 Dec 2017	176,600	0.55	97,130
Less: Restated Net Asset as on 31 Dec 2017			86,220
Positive translation Adjustment to be made			10,910

Detail	Amount in $	Remark
Translation value of Land Account	117,700	Exchange rate is of Dec 31,2017
(214000*0.55)
Remeasured Value of Land Account is	104,340	Echange rate is Acquisition Date
(222000 * 0.47)