Consider the following independent situations: 1. On January l, 2013, Ben Company formed a subsidiary in Brazil.

Question:

Consider the following independent situations:
1. On January l, 2013, Ben Company formed a subsidiary in Brazil. On February 15, 2013, Ben's subsidiary purchased inventory for 100,000 real (R). On August 23, 2013, the subsidiary purchased more inventory for R75,000. The subsidiary's inventory balance on December 31, 2013, consists of R20,000 purchased on August 23. The exchange rates were S0.45/R from January 1 to June 30,2013, $0.50/R from July 1 to October 31, and $0.52/R on December 31,2013. The average rate for 2013 was $0,475.
2. France Company owns a subsidiary in Singapore with property, plant and equipment acquired at a cost of 2,400,000 Singapore dollars (S$). Of this amount, plant costing S$l,500,000 was acquired on January 1, 2011, when the was $0.675/S$, and S$900,000 was acquired on January 1, 2012, when the was $0.625/S$. The on December 31,2013, was $0,525/ S$, and the average rate for 2013 was $0.55/S$.
Required
a. Assume the Brazilian subsidiary's functional currency is the real. Calculate (1) the translated inventory balance of the Brazilian subsidiary at December 31, 2013, and (2) the Brazilian subsidiary's translated 2013 cost of sales.
b. Now assume the Brazilian subsidiary's functional currency is the U.S. dollar. Calculate the premeasured values of the accounts described in a.
c. Assume the Singapore subsidiary's functional currency is the Singapore dollar, and that the Singapore subsidiary's property, plant and equipment are depreciated using the straight-line method over a ten-year period with no . Calculate (1) the translated balances of property, plant and equipment, and accumulated depreciation at December 31,2013, and (2) translated 2013 depreciation expense.
d. Now assume the Singapore subsidiary's functional currency is the U.S. dollar. Calculate the premeasured values of the accounts described in c. Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... 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...