Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company ( a U . S . - based company ) has a subsidiary in Nigeria where the local currency unit is the naira (
Company a USbased company has a subsidiary in Nigeria where the local currency unit is the naira NGN On December the subsidiary had the following balance sheet amounts are in thousands s:
Cash NGN Notes payable NGN
Inventory Common stock
Land Retained earnings
Building
Accumulated depreciation
NGN NGN
The subsidiary acquired the inventory on August and the land and building in It issued the common stock in During the following transactions took place:
Feb. Paid NGN on the note payable.
May Sold entire inventory for NGN on account.
June Sold land for NGN cash.
Aug. Collected all accounts receivable.
Sept. Signed longterm note to receive NGN cash.
Oct. Bought inventory for NGN cash.
Nov. Bought land for NGN on account.
Dec. Declared and paid NGN cash dividend to parent.
Dec. Recorded depreciation for the entire year of NGN
The US dollar $ exchange rates for NGN are as follows:
NGN $
August
December
February
May
June
August
September
October
November
December
December
Average for
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for
Assuming the US$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for
Input all amounts as positive. Enter amounts in whole dollars. Include all details for calculations.
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