Regarding the inclusion of all costs related to the acquisition and start-up of a fixed asset...
Regarding the inclusion of all costs related to the acquisition and start-up of a fixed asset as part of its historical cost, if this asset is acquired in another country, what currency exchange rate is recorded in this value?
Homework Answers
The currency exchange rate to be used is the spot ask rate for the foreign currency in terms of the functional currency of the reporting entity. The rate to be used is the exchange rate (ask rate) on the date of the transaction.
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Regarding the inclusion of all costs related to the acquisition and start-up of a fixed asset...
31. The appropriate exchange rate for translating a plant asset in the balance sheet of a...
31. The appropriate exchange rate for translating a plant asset in the balance sheet of a foreign subsidiary in which the functional currency is the U.S. dollar is the A) forward rate. B) current exchange rate. C) average exchange rate for the current year. D) historical exchange rate in effect when the plant asset was acquired or the date of acquisition, whichever is later. 32. A foreign subsidiary's functional currency is its local currency which has not experienced significant inflation....
Assume that a parent company sets up a subsidiary to produce printed circuit boards in a...
Assume that a parent company sets up a subsidiary to produce printed circuit boards in a foreign country that has lower tax and labor rates. The subsidiary purchases components from the parent, produces the PCBs, and then sells them back to the parent. The subsidiary keeps its books in the local (foreign currency, but all purchase and sales prices are pegged to the US dollar. At what rate would the depreciation expense recorded in the subsidiary's books be translated to...
QUESTION 4 Select all that are true regarding the balance of payments accounting: In a fixed...
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Question 20 (1 point) The fixed-asset turnover ratio provides COD The rate of decline in asset...
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A start-up publishing company estimates that the fixed costs of its first major project will be...
A start-up publishing company estimates that the fixed costs of its first major project will be $190,000, the variable cost will be $18, and the selling price per book will be $34. (a) How many books must be sold for this project to break even? (b) Suppose the publishers wish to take a total of $40,000 in salary for this project. How many books must be sold to break even, and what is the break-even point, in dollars?
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Problem 10-3 (Algo) Acquisition costs [LO10-1, 10-4, 10-6] The plant asset and accumulated depreciation accounts of...
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E10-16B (L03,4) (Asset Acquisition) Ogden Industries purchased the following assets and constructed a building as well. All this was done during the current year. Asset 3 This machine was acquired by...
E10-16B (L03,4) (Asset Acquisition) Ogden Industries purchased
the following assets and constructed a building as well. All this
was done during the current year.
Asset 3
This machine was acquired by making a $25,000 down payment and
issuing a $75,000, 1-year, zero-interest-bearing note. The note is
to be paid off in at the end of the first year. It was estimated
that the asset could have been purchased outright for $91,000.
Asset 4
This machinery was acquired by trading in...
& Fixed and Intangible Assets PPLY WHAT YOU HAVE LEARNED 8-1. Acquisition of assets. ify the...
& Fixed and Intangible Assets PPLY WHAT YOU HAVE LEARNED 8-1. Acquisition of assets. ify the costs of the asset. For any costs incurred that are not the following asset, identify the costs of the asset. For an ded in the asset cost, specify how they would be recorded. th Company purchased a new machine for its manufacturing facility. Costs curred in conjunction with this purchase included the following Invoice price $90,000, subject to 2/10, n/30 discount Sales tax 5,400...
31. The appropriate exchange rate for translating a plant asset in the balance sheet of a foreign subsidiary in which the functional currency is the U.S. dollar is the A) forward rate. B) current exchange rate. C) average exchange rate for the current year. D) historical exchange rate in effect when the plant asset was acquired or the date of acquisition, whichever is later. 32. A foreign subsidiary's functional currency is its local currency which has not experienced significant inflation....
Assume that a parent company sets up a subsidiary to produce printed circuit boards in a foreign country that has lower tax and labor rates. The subsidiary purchases components from the parent, produces the PCBs, and then sells them back to the parent. The subsidiary keeps its books in the local (foreign currency, but all purchase and sales prices are pegged to the US dollar. At what rate would the depreciation expense recorded in the subsidiary's books be translated to...
QUESTION 4 Select all that are true regarding the balance of payments accounting: In a fixed exchange rate system the current and financial accounts will exactly offset since the exchange rate does not move In a perfectly flexible (freely floating) exchange rate system, there is no need for foreign reserves if world political economies are stable. A financial account deficit suggest that the country is increasing its debt A current account deficit allows a country to "live" beyond its means
Question 20 (1 point) The fixed-asset turnover ratio provides COD The rate of decline in asset lives. The rate of replacement of fixed assets. The amount of sales generated per dollar of fixed assets. The decline in book value of fixed assets compared to capital expenditures. Question 21 (1 point) Maltese is a privately owned company. On September 3. Maltese exchanged 2.000 shares of its private common stock for equipment. There is no readily available estimate of the stock's fair...
E10.12 (LO 1, 3) (Entries for Asset Acquisition, Including Self-Construction) Below are transactions related to Duffner Company. a. The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $81,000. b. 13,000 shares of common stock with a par value of $50 per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $810,000, of which...
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E10-16B (L03,4) (Asset Acquisition) Ogden Industries purchased
the following assets and constructed a building as well. All this
was done during the current year.
Asset 3
This machine was acquired by making a $25,000 down payment and
issuing a $75,000, 1-year, zero-interest-bearing note. The note is
to be paid off in at the end of the first year. It was estimated
that the asset could have been purchased outright for $91,000.
Asset 4
This machinery was acquired by trading in...
& Fixed and Intangible Assets PPLY WHAT YOU HAVE LEARNED 8-1. Acquisition of assets. ify the costs of the asset. For any costs incurred that are not the following asset, identify the costs of the asset. For an ded in the asset cost, specify how they would be recorded. th Company purchased a new machine for its manufacturing facility. Costs curred in conjunction with this purchase included the following Invoice price $90,000, subject to 2/10, n/30 discount Sales tax 5,400...
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