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5 . Graham Company, a Mexican subsidiary of a U . S . company, sold equipment costing 8 7 5 , 0 0 0 Mexican
Graham Company, a Mexican subsidiary of a US company, sold equipment costing Mexican Pesos with accumulated depreciation of Mexican Pesos for Mexican Pesos on September The equipment was purchased on January when the exchange rate for the Mexican Peso was $ Relevant exchange rates for the Mexican Peso are as follows:
January $
September
December
Average,
Required:
a Assuming that the financial statements for Graham are translated current method by its US parent, what amount of gain or loss related to the sale of equipment would be reported in its translated income statement?
b Assuming that the financial statements for Graham are remeasured temporal method by its US parent, what amount of gain or loss related to the sale of equipment would be reported in its remeasured income statement?Graham Company, a Mexican subsidiary of a US company, sold equipment costing
Mexican Pesos with accumulated depreciation of Mexican Pesos for
Mexican Pesos on September The equipment was purchased on
January when the exchange rate for the Mexican Peso was $ Relevant
exchange rates for the Mexican Peso are as follows:
Required:
a Assuming that the financial statements for Graham are translated current method
by its US parent, what amount of gain or loss related to the sale of equipment
would be reported in its translated income statement?
b Assuming that the financial statements for Graham are remeasured temporal
method by its US parent, what amount of gain or loss related to the sale of
equipment would be reported in its remeasured income statement?
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