ADVANCED ACCOUNTING(LL) W/CONNECT
13th Edition
ISBN: 9781260282382
Author: Hoyle
Publisher: MCG
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Chapter 10, Problem 11P
To determine
Identify the appropriate answer for the given statement from the given choices.
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The following information is to be used in answering the following question:
TT Exports (TTE)Manufacturing's foreign subsidiary has the following balance sheet:
Cash, marketable securities
Accounts receivable
Inventory (at market.
Fixed Assets
Total assets
FC 250,000
1,000,000
2,700,000
5,100,000
-----------------
FC 9,050,000
Current liabilities
Long-term debt
Equity
Total liabilities
plus equity
FC 750,000
3,400,000
4,900,000
---------------
FC 9,050,000
Suppose the FC appreciates from $0.70 to $0.75 during the period. Under the current rate method, what is TTEs translation gain (loss)?
a.
a loss of $192,000
b.
a loss of $12,000
c.
a gain of $294,000
d.
a gain of $245,000
Emerald Corporation subsidiary buys marketable equity securities and inventory on April 1, 2015, and they are still on hand at year-end. Inventory is carried at cost under the lower-of-cost-or-market rule. Currency exchange rates for 1 FC follow:January 1, 2016 P 0.15 = 1 FCApril 1, 2016 0.16 = 1June 1, 2016 0.17 = 1December 31, 2016 0.19 = 1
Assume that the peso is the subsidiary’s functional currency. What balances does a consolidated balance sheet report as of December 31, 2017?A. Marketable equity securities = P 16,000 and Inventory = P 16,000.B. Marketable equity securities = P 17,000 and Inventory = P 17,000.C. Marketable equity securities = P 19,000 and Inventory = P 16,000.D. Marketable equity securities = P 19,000 and Inventory = P 19,000.
In 1995, Ajax Manufacturing's German subsidiary has the following balance sheet:Cash, marketablesecuritiesAccounts receivableInventory (at market.Fixed AssetsTotal assetsDM 250,0001,000,0002,700,0005,100,000-----------------DM 9,050,000Current liabilitiesLong-term debtEquityTotal liabilitiesplus equityDM 750,0003,400,0004,900,000---------------DM 9,050,000Suppose the DM appreciates from $0.70 to $0.76 during the period.10.16 Under the current/noncurrent method, what is Ajax's translation gain (loss).?a) a gain of $294,000b) a gain of $192,000c) a loss of $174,000d) a loss of $12,000
Chapter 10 Solutions
ADVANCED ACCOUNTING(LL) W/CONNECT
Ch. 10 - Prob. 1QCh. 10 - What causes balance sheet (or translation)...Ch. 10 - Prob. 3QCh. 10 - Prob. 4QCh. 10 - Prob. 5QCh. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - Prob. 8QCh. 10 - Prob. 9QCh. 10 - Prob. 10Q
Ch. 10 - Prob. 11QCh. 10 - Which translation method does U.S. GAAP require...Ch. 10 - Prob. 13QCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - What amount does Newberrys consolidated income...Ch. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - A foreign subsidiarys functional currency is its...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - The following accounts are denominated in rubles...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Sullivans Island Company began operating a...Ch. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - The following account balances are for the Agee...Ch. 10 - Prob. 35PCh. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - Prob. 1DYSCh. 10 - RESEARCH CASE 2FOREIGN CURRENCY TRANSLATION...Ch. 10 - Prob. 3DYSCh. 10 - Prob. 4DYSCh. 10 - Prob. 5DYS
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