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A subsidiary of Reynolds Inc., a U.S. company, was located in a foreign country. The local currency of this subsidiary was the Euro () while
A subsidiary of Reynolds Inc., a U.S. company, was located in a foreign country. The local currency of this subsidiary was the Euro () while the functional currency of this subsidiary was the U.S. dollar. The subsidiary acquired Equipment A on January 1, 2018, for 250,000. Depreciation expense associated with Equipment A was 25,000 per year. On January 1, 2020, the subsidiary acquired Equipment B for 150,000 and Equipment B had associated depreciation expense of 10,000. The subsidiary owned no other depreciable assets. Currency exchange rates between the U.S. dollar and the Euro were as follows: January 1, 2018 December 31, 2018 2018 Average January 1, 2019 December 31, 2019 2019 Average January 1, 2020 December 31, 2020 2020 Average 1 = $1.20 1 = $1.14 1 = $1.18 1 = $ 1.15 1 = $1.21 1 = $1.18 1 = $ 1.26 1 = $ 1.30 1 = $1.28 What amount would have been reported for depreciation expense related to the equipment owned by the subsidiary in Reynolds's consolidated balance sheet at December 31, 2018? What amount would have been reported for total equipment owned by the subsidiary in Reynolds's consolidated balance sheet at December 31, 2020? What amount would have been reported for total equipment owned by the subsidiary in Reynolds's consolidated balance sheet at December 31, 2018? What amount would have been reported for depreciation expense related to the equipment owned by the subsidiary in Reynolds's consolidated balance sheet at December 31, 2020
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