exchange gain or loss
Q: Explain the differences between upstream and downstream intra-entity transfers, as well as how each…
A: Intra-entity transfer refers to transfer of goods or products among the entities. More often, such…
Q: Describe the exchanges in nonmonetary asset.
A: A non-monetary transaction refers to a commercial or business transaction that happens without the…
Q: what is accounting for goodwill and what are its implications?
A: Goodwill is an intangible asset. It generally arises from the acquisition of a business. In other…
Q: On the level of exchange allocate the following types of a transfer: А External B Internal C…
A: The question is related to on the level of exchange the types of transfer allocation.
Q: Explain the difference between upstream and downstream intra entity transfers and how each affects…
A: In simple terms, downstream transfers or transactions follows a flow from the parent organization to…
Q: How much is the goodwill/gain on bargain purchase?
A: Share capital = P500,000 Additional paid in capital = P300,000 Retained earnings = P500,000 Add:…
Q: What Is Goodwill And How Is It Accounted For?
A: Definition: Goodwill: Goodwill is a good reputation developed by a company over the years. This is…
Q: goodwill or (gain on acquisition) arising on consolidation ace price?
A: Fair value of assets = P1,280,000 Less: Fair value of Liabilities = P716,000 Identifiable net…
Q: Define goodwill impairments.
A: Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on…
Q: Explain how to defer gains using the like-kind exchange rules.
A: A like kind exchange is defined as the tax deferred transaction, which used to allow regarding the…
Q: Define the term pure borrowing?
A: The term borrowing is defined as the amount received from another party with the agreement that the…
Q: What is goodwill and how is it measured?
A: Intangible Assets: Intangible assets are the long-term assets having no physical existence. However,…
Q: Define Trade discounts.
A: Business: It refers to a commercial activity involving buying and selling of a product or a…
Q: 1. This is the criterion to determine whether the transfer is accounted for as borrowing.
A: Borrowings-: The Borrowing base is the entire quantity of collateral against that a lender that will…
Q: gain (loss) on the transfer
A: Gain (loss) on the transfer of investment property = Fair value on the date of transfer - Carrying…
Q: Define the following relative to like-kind exchanges: Boot Postponed gain or loss Gain or loss…
A: The like kind exchange is defined as the transaction of tax deferred which allows for asset disposal…
Q: what does the voting rights of the Exchange mean?
A: Shareholder voting indicates the privilege given to shareholders to take part in the decision making…
Q: Do U.S. GAAP and IFRS differ in the criteria they use to determine whether a transfer of receivables…
A: International Financial Reporting Standards: They are commonly known as IFRS. It is a set of…
Q: es RTN hold any importan
A: In online transactions are done based on codes and codes are given for the name of bank and area of…
Q: How should goodwill be amortized?
A: Goodwill is an example of intangible assets which has no physical identity.
Q: Example: Cost of acquisition n
A: Cost of acquistion is the cost of acquiring assets of the company . As…
Q: Which of the following combinations correctly describes the relationship between foreign currency…
A: Foreign Currency Financial Statements: Foreign currency financial statements are those statements…
Q: What is the amount of Goodwill
A: Goodwill/Gain on Bargain purchase: Purchase consideration/Investment Add: Non controlling Interest…
Q: In what ways do exchanges reduce contracting costs and risks?
A: 1) Contracting Cost: Whenever a company or an entity enters into a contract with the customer or any…
Q: al entries for elimination of intragroup sales?
A: In this example S ltd is partially owned subsidiary company and S ltd sold goods to its parent…
Q: Compute the goodwill (gain on bargain purchase).
A: The goodwill (gain on bargain purchase) is calculated as follows:Reference:
Q: ment-mandated non-exchange transactions.
A: Given: To explain the correct option as,
Q: Define Noncash Acquisitions.
A: The acquisition involves one party selling out to another wherein the buying party combines both the…
Q: Define arbitrage
A: Introduction: Usually, an arbitrage opportunity is used when there is the option of purchasing an…
Q: Distinguish between: Primary market and secondary market
A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…
Q: can goodwill be amoritized?
A: Goodwill: Goodwill is an intangible asset to the company. However, goodwill is recorded in the books…
Q: How does FOB Shipping Point differ from FOB Destination
A: FOB means Free on Board [ or Freight on Board]. FOB…
Q: What is goodwill?
A: Before acquiring a business, the vendor evaluates the business on various parameters. Goodwill is…
Q: Differentiate between IFRS vs. U.S. GAAP.
A: International Financial Reporting Standards (IFRS): IFRS are a set of international accounting…
Q: gain is to be recognized
A: Carrying amount of the non-monetary asset = Cost - Accumulated depreciation Given that, Cost…
Q: illustrate the different exchange rates regimes.
A:
Q: compound interest.
A: Compound interest = P * (1 + (i2/m))mt - P
Q: What is the difference between an exchange and a nonexchange transaction?
A: A transaction is considered to be an exchange when both parties provide and receive consideration of…
Q: fair value (market-related value) efit obligation assets
A: The answer has been mentioned below.
Q: Explain Amortize Goodwill? Give an example?
A: Amortize Goodwill: Goodwill is an intangible asset amortization of goodwill means a reduction in the…
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- FOREIGN INVESTMENT ANALYSIS After all foreign and U.S. taxes, a U.S. corporation expects to receive 2 pounds of dividends per share from a British subsidiary this year. The exchange rate at the end of the year is expected to be 1.30 per pound, and the pound is expected to depreciate 5% against the dollar each year for an indefinite period. The dividend (in pounds) is expected to grow at 10% a year indefinitely. The parent U.S. corporation owns 10 million shares of the subsidiary. What is the present value in dollars of its equity ownership of the subsidiary? Assume a cost of equity capital of 11% for the subsidiary.Suppose a firm makes purchases of $3.65 million per year under terms of 2/10, net 30, and takes discounts. What is the average amount of accounts payable net of discounts? (Assume the $3.65 million of purchases is net of discounts—that is, gross purchases are $3,724,489.80, discounts are $74,489.80, and net purchases are $3.65 million.) Is there a cost of the trade credit the firm uses? If the firm did not take discounts but did pay on the due date, what would be its average payables and the cost of this nonfree trade credit? What would be the firm’s cost of not taking discounts if it could stretch its payments to 40 days?Grupo Bimbo, although Mexican by incorporation, evaluates all business results, including financing costs, in U.S. dollars. The company needs to borrow $ 10,000,000 or the foreign currency equivalent for one year. For all issues, interest is payable once per year (annual compounding), at the end of the year. Available alternatives are: Issue Japanese yen bonds at par yielding 3% per annum. The current exchange rate is ¥106/$, and the yen is expected to strengthen against the dollar to ¥100/$. Issue euro-denominated bonds at par yielding 7% per annum. The current exchange rate is $1.15/€, and the euro is expected to weaken against the dollar to $1.1/€. Issue U. S. dollar bonds at par yielding 5% per annum. Which course of action do you recommend Grupo Bimbo take?
- Mississippi Company borrows ¥80,000,000 at a time when the exchange rate is 110 ¥/$. Principal is to be repaid two years from now, and interest is for the yen bond is 4% per annum, paid annually in yen. Suppose the yen is expected to depreciate relative to the dollar to 120 ¥/$ in one year, and 125¥/$ in two years. Under these circumstances, what would be the effective dollar cost of this loan for Mississippi Company? Please enter your answer as % -- e.g. if your answer is 2.34% type in 2.34.A U.S. firm, sells merchandise today to a British company for £100,000. The current exchange rate is $1.38/£, the account is payable in three months, and the firm chooses to hedge by borrowing £98,765.43 today and exchanging the proceeds today for dollars; the loan will be paid back with the £100,000 accounts receivable (money market hedge). If Husky converted the borrowed pounds into dollars today and invested that amount at its WACC of 6% (1.5% for 90 days), how much much money in U.S. dollars will Husky Sporting Goods Company have in 90 days?Bank one issued $200 million worth of one-year CD liabilities in Brazilian reals at a rate of 6.50 percent. The exchange rate of U.S. dollars for Brazilian reals at the time of the transaction was $0.305/Br 1. What will be the percentage cost to Bank one on this CD if the dollar appreciates relative to the Brazilian real such that the exchange rate of U.S. dollars for Brazilian reals is $0.285/Br 1 at the end of the year?
- North Bank has been borrowing in the U.S. markets and lending abroad, thus incurring foreign exchange risk. In a recent transaction, it issued a one-year $2 million CD at 6 percent and funded a loan in euros at 8 percent. The spot rate for the euro was €1.45/$ at the time of the transaction (US being the home country). a. Information received immediately after the transaction closing indicated that the euro will depreciate to €1.47/$ by year-end. If the information is correct, what will be the realized spread on the loan? What should have been the bank interest rate on the loan to maintain the 2 percent spread? Assume adjustments in principal value are included in the spread. b. The bank had an opportunity to sell one-year forward marks at €1.46. What would have been the spread on the loan if the bank had hedged forward its foreign exchange exposure? c. What is interest rate parity theory and calculate that at what forward exchange rate of dollars per euro, an investor in USA would…On April 10, the annualized six-month Aussie dollar rate in the Sydney market was 2.98%, the annualized six-month US dollar rate in the New York market was 0.32%, the spot exchange rate was $1=A$1.0689~1.0699, the six-month forward premium was 40~ 50, and a US bank borrowed 1 million US dollar to do the interest rate arbitrage. What will be the result of the transaction? please give your answer in intergers (unit: US dollars)ABC Corporation agreed that it will buy 1,000 USD at an exchange rate of P52 one month from now. The exchange rate on the transaction date is P54. How much is the net gain/(loss) based on the information above?
- Assume that a bank has assets located in Germany worth €390 million earning an average of 6 percent. It also holds €190 in liabilities and pays an average of 4 percent per year. The current spot rate is €1.50 for $1. If the exchange rate at the end of the year is €2.00 for $1: a. What happened to the dollar? Did it appreciate or depreciate against the euro (€)?b. What is the effect of the exchange rate change on the net interest margin (interest received minus interest paid) in dollars from its foreign assets and liabilities?c. What is the effect of the exchange rate change on the value of the assets and liabilities in dollars?McDougan Associates (USA). McDougan Associates, a U.S.-based investment partnership, borrows €80,000,000 at a time when the exchange rate is $1.3460 = €1.00. The entire principal is to be repaid in three years, and interest is 6.250% per annum, paid annually in euros. The euro is expected to depreciate vis-à-vis the dollar at 3% per annum. What is the effective cost of this loan for McDougan?Suppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar. In order to close the sale, DeGraw agreed to make the bill payable in yen, thus agreeing to take some exchange rate risk for the transaction. The terms were net 6 months. If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would DeGraw actually receive after it exchanged yen for U.S. dollars?