Assume that Deepa Corporation has a subsidiary company based in Japan Requirements 1 Translate into dollars the foreign currency balance sheet of the Japanese subsidiary of Deepa Yen Assets 390,000,000 Liabilities 145,000,000 Stockholders equity Common stock 21,000,000 Retained earnings 224,000,000...

Req 1 This situation will generate a positive translation adjustment which is like a gain The gain o ...

Assume that Deepa Corporation has a subsidiary company based in Japan. Requirements 1. Translate into dollars the

Question:

Assume that Deepa has a subsidiary company based in Japan.

Requirements
1. Translate into dollars the foreign-currency of the Japanese subsidiary of
Deepa.
Yen___
Assets..................................... ¥390,000,000
Liabilities................................¥145,000,000
Stockholders’ equity:
Common stock....................... 21,000,000
Retained earnings................... 224,000,000
¥390,000,000
When Deepa acquired this subsidiary, the Japanese yen was worth $0.0088. The current is $0.0103. During the period when the subsidiary earned its income, the average was $0.0092 per yen. Before you perform the foreign-currency translation calculations, indicate whether Deepa has experienced a positive or a negative translation adjustment. State whether the adjustment is a gain or a loss, and show where it is reported in the To which company does the foreign-currency translation adjustment “belong”? In which company’s will the translation adjustment be reported?

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Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...