Daisan Company was created as a wholly owned subsidiary of Avioco Corporation on January 1, Year 1. On that date, Avioco invested $57,000 in Daisans capital stock
platok Stay Home- Mobily Il.. ACCT 321 Second Semester 2020 Case Study Daisan Company was created as a wholly owned subsidiary of Avioco Corporation on January 1. Year 1. On that date, Avice invested S$7,000 in Daisan's capital stack Given the exchange rate on that date of $0.95 per Brazilian Real (BRL), the initial investment of $57,000 was converted into 60.000 BRL Other than the capital investment on January 1, there were no transactions involving stockholders' equity in Year 1 Daisan's BRL denominated financial statements for Year 2 are as follows: Income Statement Year 2 BY BRL (320.0001 330.000 97.000 Cost of goods sold Gross profit Operating expenses Income before tax Income taxes Net Income 169,900) 153.100 Statement of Retained Earnings Year 2 (By BRL Retained earnings, 1/1/12 255.000 Net income 163,100 Dividends (padon 12/1/12) (50,000 Retained earnings, 12/31/12 BE100 Balance Sheet December 31. Year 2 by BRL Canh 80.100 Receivables 100.000 entory 80.000 Plant & Equipment (net) 400.000 Less Accumulated depreciation 150,000 Total assets 50010 172.000 Capital stock 50 000 Retained earnings 12/31/42 358 100 Total abilities & Stockholders' equity ERARD The BRL is the primary currency that Daisan uses in its day-to-day operations. The BRL has steadily fallen in value against the dollar since Avioco made the investment in Daison on January 1 Year 1. Relevant exchange rates for the BRL for Years 1 and 2 are as follows: platok Stay Home- Mobily Il.. ACCT 321 Second Semester 2020 Case Study Daisan Company was created as a wholly owned subsidiary of Avioco Corporation on January 1. Year 1. On that date, Avice invested S$7,000 in Daisan's capital stack Given the exchange rate on that date of $0.95 per Brazilian Real (BRL), the initial investment of $57,000 was converted into 60.000 BRL Other than the capital investment on January 1, there were no transactions involving stockholders' equity in Year 1 Daisan's BRL denominated financial statements for Year 2 are as follows: Income Statement Year 2 BY BRL (320.0001 330.000 97.000 Cost of goods sold Gross profit Operating expenses Income before tax Income taxes Net Income 169,900) 153.100 Statement of Retained Earnings Year 2 (By BRL Retained earnings, 1/1/12 255.000 Net income 163,100 Dividends (padon 12/1/12) (50,000 Retained earnings, 12/31/12 BE100 Balance Sheet December 31. Year 2 by BRL Canh 80.100 Receivables 100.000 entory 80.000 Plant & Equipment (net) 400.000 Less Accumulated depreciation 150,000 Total assets 50010 172.000 Capital stock 50 000 Retained earnings 12/31/42 358 100 Total abilities & Stockholders' equity ERARD The BRL is the primary currency that Daisan uses in its day-to-day operations. The BRL has steadily fallen in value against the dollar since Avioco made the investment in Daison on January 1 Year 1. Relevant exchange rates for the BRL for Years 1 and 2 are as follows
