Assume that Patel Corporation has a subsidiary company based in Japan Requirements 1 Translate into dollars the foreign currency balance sheet of the Japanese subsidiary of Patel Yen Assets 515,000,000 Liabilities 145,000,000 Stockholders equity Common stock 18,000,000 Retained earnings 352,000,000...

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

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

Question:

Assume that Patel has a subsidiary company based in Japan.

Requirements
1. Translate into dollars the foreign-currency of the Japanese subsidiary of Patel.
Yen____
Assets...................................... ¥515,000,000
Liabilities................................ ¥145,000,000
Stockholders’ equity:
Common stock...................... 18,000,000
Retained earnings.................. 352,000,000
¥515,000,000
When Patel acquired this subsidiary, the Japanese yen was worth $0.0092. The current is $0.0107. During the period when the subsidiary earned its income, the average was $0.0095 per yen. Before you perform the foreign-currency translation calculations, indicate whether Patel 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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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...