Highland company provided the following information on December 31, 2018: Cash 2,000,000 Trade and other receivables 2,600,000 Property, plant and equipment-net 4,600,000 Trade and other payables 1,800,000 Share capital 4,000,000 Revaluation surplus 400,000 Retained earnings 3,000,000 The general price index numbers are 112 on January 1, 2015 which is the date of incorporation, 125 on December 31, 2017 and 280 on December 31, 2018. The property, plant and equipment were acquired on January 1, 2015 but were revalued on December 31, 2017. Required: 1. What amount should be reported as total assets in a hyperinflationary statement of financial position? a. 14,904,000 b. 13,800,000 c. 10,800,000 d. 16,100,000
Highland company provided the following information on December 31, 2018: Cash 2,000,000 Trade and other receivables 2,600,000 Property, plant and equipment-net 4,600,000 Trade and other payables 1,800,000 Share capital 4,000,000 Revaluation surplus 400,000 Retained earnings 3,000,000 The general price index numbers are 112 on January 1, 2015 which is the date of incorporation, 125 on December 31, 2017 and 280 on December 31, 2018. The property, plant and equipment were acquired on January 1, 2015 but were revalued on December 31, 2017. Required: 1. What amount should be reported as total assets in a hyperinflationary statement of financial position? a. 14,904,000 b. 13,800,000 c. 10,800,000 d. 16,100,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...
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Highland company provided the following information on December 31, 2018:
Cash 2,000,000
Trade and other receivables 2,600,000
Property, plant and equipment-net 4,600,000
Trade and other payables 1,800,000
Share capital 4,000,000
Revaluation surplus 400,000
The general price index numbers are 112 on January 1, 2015 which is the date of incorporation, 125 on December 31, 2017 and 280 on December 31, 2018. The property, plant and equipment were acquired on January 1, 2015 but were revalued on December 31, 2017.
Required: 1. What amount should be reported as total assets in a hyperinflationary
a. 14,904,000
b. 13,800,000
c. 10,800,000
d. 16,100,000
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