Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ans ALL for an upvote 49. An entity, whose functional curreney is the dollar, acquired 100% of the equity capital of a foreign entity at
ans ALL for an upvote 49. An entity, whose functional curreney is the dollar, acquired 100% of the equity capital of a foreign entity at a consideration of 19 million euros on 30 June 2008.The fair value of the net assets of the foreign entity at that date was 16 million euros. The exchange rates at 30 June 2008 and 31 December 2008 were 1.2 euros =1 dollar and 1.4 euros =1 dollar respectively. What figure for goodwill should be included in the group financial 50. Am entlity, whose funetional currency is the dollar, purchases machinery from a foreign supplier for 8 million euros on 31 October 2008 when the exchange rate was 1.5 euros =1 dollar. At the year-end of 31 December 2008, the amount has not been paid. The closing exchange rate was 1.25 euros =1 dollar. Which of the following statements are correct? \begin{tabular}{|l|l|} \hline A & Cost of plant $5.33 million dollars, exchange loss $1.07 million, trade payable $6.4. mill \\ \hline B & Cost of plant $6.4 million dollars, no exchange gain, trade payable $6.4 million \\ \hline C & Cost of plant $5.33 million dollars, no exchange loss, trade payable $5.33 million \\ \hline D & Cost of plant $6.4 million dollars, exchange gain $1.07 million, trade payable $5.33 \\ \hline \end{tabular}
ans ALL for an upvote
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started