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Assume that our company owns a subsidiary operating in France and accounts for its investment in the subsidiary using the equity method. The subsidiary maintains
Assume that our company owns a subsidiary operating in France and accounts for its investment in the subsidiary using the equity method. The subsidiary maintains is books in Euros () as its functional currency. Followina are the subsidiarv's financial statements (in ) for the most recent vear: Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings 448,0001,100,000460,000700,0001,845,0004,553,000 Cumulative translation adjustment Total Liabilities \& Equity The relevant exchange rates for the $US value of the Euro () are as follows: Required: a. Translate the subsidiary's, income statement, statement of retained earnings, balance sheet, and statement of cash flows from Euros () into \$US (assume that the BOY Retained Earnings for the subsidiary is $1,483,860. b. Compute the end Cumulative Translation Adjustment directly, assuming a BOY balance of $865,140. SHOW EVERY PIECE OF YOUR ADJUSTMENT CALCULATION. Assume that our company owns a subsidiary operating in France and accounts for its investment in the subsidiary using the equity method. The subsidiary maintains is books in Euros () as its functional currency. Followina are the subsidiarv's financial statements (in ) for the most recent vear: Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings 448,0001,100,000460,000700,0001,845,0004,553,000 Cumulative translation adjustment Total Liabilities \& Equity The relevant exchange rates for the $US value of the Euro () are as follows: Required: a. Translate the subsidiary's, income statement, statement of retained earnings, balance sheet, and statement of cash flows from Euros () into \$US (assume that the BOY Retained Earnings for the subsidiary is $1,483,860. b. Compute the end Cumulative Translation Adjustment directly, assuming a BOY balance of $865,140. SHOW EVERY PIECE OF YOUR ADJUSTMENT CALCULATION
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