Homework Help Question & Answers

# Problem #4 (15 points) On January 1, 2017, a company trial bala enapore company was acquired by a u.s. company. The Singapore subsidiany December 31, 2017 Dr (Cr) and end of 2017 appear below, in...

Problem #4 (15 points) On January 1, 2017, a company trial bala enapore company was acquired by a u.s. company. The Singapore subsidiany December 31, 2017 Dr (Cr) and end of 2017 appear below, in Singapore dollars (SS) January 1, 2017 Dr S\$ 1,500,000 7,500,000 14,500,000 s\$ 400,000 8,000,000 15,000,000 Cash and receivables Inventories Fixed assets, net (18,000,000) Liabilities (18,400 Capital stock Dividendsbeginning 3,000000 3,000.000) 300,000 (3,000,000 Sales (12,000,000) Cost of goods sold Depreciation expense Other operating 8,000,000 1,000,00 Sales, inventory purchases and other operating expenses S\$500,000 were purchased in 2017, when the exchange rate was occurred evenly during 2017. Fixed assets of when the exchange rate was \$0.725/s\$. Other exchange rates (U.S. dollars/S\$) are as follows: January 1, 2017 Average for 2017 December 31, 2017 \$0.75 0.73 0.71 a. The subsidiary's functional currency is the Singapore dollar. Calculate the translation gain or loss for 2017. Specify whether it is a gain or loss. b. The subsidiary's functional currency is the U.S. dollar. Calculate the remeasurement gain or loss for 2017. Specify whether it is a gain or loss.

##### Add Answer of: Problem #4 (15 points) On January 1, 2017, a company trial bala enapore company was acquired by a u.s. company. The Singapore subsidiany December 31, 2017 Dr (Cr) and end of 2017 appear below, in...
Similar Homework Help Questions
• ### On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 milli...

On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was \$100 CHF 1. On December 18, 2017, the book and fair values of the subsidiary's assets and liabilities were: 1,318,006 4,810,800 (2,128,000) Property, plant & equipment Stephanie prepares consolidated financial statements on December 31, 2017 By that date, the Swiss franc has appreciated to \$1.10...

• ### Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three...

Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 30,800 dinars accounts receivable of 82,500 dinars, and land that cost 225,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 175,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 145,000 dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a...

• ### On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF),...

On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was \$1.00 = CHF 1. On December 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were: Cash CHF 813,000 Inventory 1,313,000 Property, plant & equipment 4,013,000 Notes payable (2,126,000 ) Stephanie prepares consolidated financial statements on December 31, 2017. By that...

• ### Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by...

Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 96,000 pounds. The subsidiary immediately borrowed 230,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 326,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 201, the subsidiary...

• ### Sullivan's Island Company began operating a subsidiary in a foreign country on January 1,2017, by investing capital in the amount of 75,000 pounds. The subsidiary immediately borrowed 160,000 pou...

Sullivan's Island Company began operating a subsidiary in a foreign country on January 1,2017, by investing capital in the amount of 75,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 235,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-ine method. Also on January 1, 2017, the subsidiary rented...

• ### Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On D...

Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's) Cash Inventory Land Building Accumulated depreciation NGN 20,200 21,200 10,600 Notes payable NGN 16,400 11,000 4,100 41,000 Common stock Retained earnings (20,500) NGN 52,000 NGN 52,000 The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the...

• ### Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 \$1,400 2,080 2,420 1,610 December 31, 2017 \$...

Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 \$1,400 2,080 2,420 1,610 December 31, 2017 \$2,080 2,970 3,550 2,520 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for Contributions (funding in 2017) Benefits paid in 2017 10% 810 the year 2017 410 650 190 (a) Compute the actual return on the...

• ### Help Save & Exit Subn On January 1,20X8, Pace Company acquired all of the outstanding stock of Spin PLC, a B...

Help Save & Exit Subn On January 1,20X8, Pace Company acquired all of the outstanding stock of Spin PLC, a Brtish Company, for \$350.000 Spin's net assets on the date facqustion were 250.000 pounds (5) On January 1, 20x8, the book and fair values of the Spin's identifiable assets and liabilities approximated their fair values except for plant, and equipment and trademarks. The fair value of Spin's property, plant, and equipment property, exceeded its book value by \$25,000. The remaining...

• ### On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an in...

On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 62,000. RoadTime's December 31, 20X1, trial balance in SFr is as follows Debit SFr 8,500 22.000 6,900 26,000 109,000 Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock SFr 10,200 12,900 50,500 62,000 169,700 Sales Cost of Goods Sold 72,000 10,200 33,500 17,200 Depreciation...

• ### Oliver Corporation decided on January 1, 2020, that its Canadian subsidiary’s functional currency...

Oliver Corporation decided on January 1, 2020, that its Canadian subsidiary’s functional currency is the Canadian dollar rather than the U.S. dollar. On that date, the net assets of its Canadian subsidiary amounted to C\$20,000,000 and to \$11,000,000 when remeasured; the exchange rate was \$0.75/C\$. During 2020, the Canadian subsidiary reported net income of C\$2,500,000 and declared and paid dividends of C\$1,000,000. No other changes in owners’ equity occurred. Required Calculate the translation gain or loss for 2020, and the...

Need Online Homework Help?

Get FREE Expert Answers
WITHIN MINUTES