The following is the foreign currency balance sheet for Lee Company on December 31, 2006 (use for questions 1 and 2) Cash 100,000 Fixed Assets 30,000 Liabilities 60,000 Common Stock 20,000 Retained Earnings 50,000 The following FX rates were in effect on December 31: Current (Spot) rate: 1 US= .40 FC Historical rate: 1 US= .30 FC Forward rate: 1 US= .25 FC Assume the US dollar is the functional currency: a. What is the US dollar value of Cash on Dec 31? b. What is the US dollar value of Fixed Assets on Dec 31? c.Where is the FX remeasurement gain or loss under the temporal method at Dec 31 reported? 2. Assume the FC is the functional currency. a. What is the US dollar value of Cash on Dec 31? b. What is the US dollar value of Fixed Assets on Dec 31? c.Where is the FX translation adjustment under the current rate method at Dec 31 reported?
The following is the foreign currency balance sheet for Lee Company on December 31, 2006 (use for questions 1 and 2)
Cash 100,000
Fixed Assets 30,000
Liabilities 60,000
Common Stock 20,000
The following FX rates were in effect on December 31:
Current (Spot) rate: 1 US= .40 FC
Historical rate: 1 US= .30 FC
Forward rate: 1 US= .25 FC
- Assume the US dollar is the functional currency:
a. What is the US dollar value of Cash on Dec 31?
b. What is the US dollar value of Fixed Assets on Dec 31?
c.Where is the FX remeasurement gain or loss under the temporal method at Dec 31 reported?
2. Assume the FC is the functional currency.
a. What is the US dollar value of Cash on Dec 31?
b. What is the US dollar value of Fixed Assets on Dec 31?
c.Where is the FX translation adjustment under the current rate method at Dec 31 reported?
ANSWER ALL (INCLUDING 1 AND 2 BOTH WITH SUB QUESTION) PLEASE.
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