Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria, where the local currency unit is the
Question:
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria, where the local currency unit is the naira (NGN). On December 31, 2023, the subsidiary had the following balance sheet (amounts are in thousands [000s]):
The subsidiary issued the common stock in 2015, and acquired the land and building in 2016. It acquired the inventory on August 1, 2023. During 2024, the following transactions took place:
The U.S dollar ($) exchange rates for 1 NGN are as follows:
a. Assuming the NGN is the subsidiary’s functional currency, what is the translation adjustment determined solely for 2024?
b. Assuming the U.S. dollar is the subsidiary’s functional currency, what is the remeasurement gain or loss determined solely for 2024?
Step by Step Answer:
Advanced Accounting
ISBN: 9781264798483
15th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik