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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:
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?
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