Diekmann Compary. a US. based company, acquired a 100 percent interest in Ravona A S. in the Ctech Repubic on January 1,2010 . When the exchange rate for the Czech koruna (KCis) wss 50.05 . Pakona's fonancial statements as of December 31, 2020. two years later, follow Adeltionel Informeton - The January 1, 2020, beginning inventory of K s 6,000,000 was acquired on December 18,2019 , when the exchange rate was 50.043. Purchases of inventory were acquired uniformly during 2020. The December 31, 2020, ending inventory of Ks 8,500,000 was acquired in the latter part of 2020 when the exchange rate was $0.032. All depreciable assets (equipment and buildings) were on the books when the subsidiary was acquired-exceps for Ks 5.000 .000 of equipment acquired on January 3, 2020, when the exchange rate was $0.036, and KCC s 12,000,000 in buildings acquired on March 5,2020 . when the exchange rate was $0.034. Straight-line depreciation is 10 years for equipment and 40 years for buildings. A full year's depreciation is taken in the year of acquisition. - Dividends were declared and paid on December 15, 2020. when the exchange rate was $0.031. - Other exchange rates for 1Kcs follow. Franslate the Czech Koruna financiol statements' at December 31, 2020, in the following three situstions: a. The Czechkoruna is the functional currency. The December 31, 2019, U. dol ar-translated balance shect reponted retained earnings of 522,500 . The December 31, 2019. cumtubtive trans ation adjustment was negative $202,500 idebit balance) b. The US, dolacis the functional currency. The Decemoer 31, 2019, US. do ac-remeasured oalance sheet reportediretained earnings inchoing a 2019 remeasurement gainl of $353,000 c. The Is, do lar is the functional curfency. Rakona has no long-term deot Insteac, it has common stock of kcs 20.000,000 and add tipnalpad-in capital of Kds 50,000,000. The Decemoer 31. 2.019, U.S colla-remeasured bsiance shect reported a negative paiance inictalned farnings of $147,000 incudng a 2019 remeasurement loks The Perember 21, 2019, US: dollac-tranclated balance sheent reported retained eamiegn of \$22,500. The Deonmber 31 , 2019, cumulative trandiation adfustrient wan negative $202,500 (Dabit balance) (Amounts to be deductsed and negothit amodris should be indicatod whith a minus sign.) Tramtatin the Caech karuna financial statements at December. 31, 2020 assuming the U.5. bollar is the functional aurnwey. Rahona has no long term debt. instead, it has common stock of Kis 20,000,000 and additional paid-in coptal of kies 50,000,000. The December 31, 2019, U.S. dellar-remeasured balance sthet reperted a negative balance in ruta mind earnings of $147,000 fincluding a 2019 remeasurement loss). (Amounts to be deducted and negathe arivounta should be indicated whth a fainus sign+) Diekmann Compary. a US. based company, acquired a 100 percent interest in Ravona A S. in the Ctech Repubic on January 1,2010 . When the exchange rate for the Czech koruna (KCis) wss 50.05 . Pakona's fonancial statements as of December 31, 2020. two years later, follow Adeltionel Informeton - The January 1, 2020, beginning inventory of K s 6,000,000 was acquired on December 18,2019 , when the exchange rate was 50.043. Purchases of inventory were acquired uniformly during 2020. The December 31, 2020, ending inventory of Ks 8,500,000 was acquired in the latter part of 2020 when the exchange rate was $0.032. All depreciable assets (equipment and buildings) were on the books when the subsidiary was acquired-exceps for Ks 5.000 .000 of equipment acquired on January 3, 2020, when the exchange rate was $0.036, and KCC s 12,000,000 in buildings acquired on March 5,2020 . when the exchange rate was $0.034. Straight-line depreciation is 10 years for equipment and 40 years for buildings. A full year's depreciation is taken in the year of acquisition. - Dividends were declared and paid on December 15, 2020. when the exchange rate was $0.031. - Other exchange rates for 1Kcs follow. Franslate the Czech Koruna financiol statements' at December 31, 2020, in the following three situstions: a. The Czechkoruna is the functional currency. The December 31, 2019, U. dol ar-translated balance shect reponted retained earnings of 522,500 . The December 31, 2019. cumtubtive trans ation adjustment was negative $202,500 idebit balance) b. The US, dolacis the functional currency. The Decemoer 31, 2019, US. do ac-remeasured oalance sheet reportediretained earnings inchoing a 2019 remeasurement gainl of $353,000 c. The Is, do lar is the functional curfency. Rakona has no long-term deot Insteac, it has common stock of kcs 20.000,000 and add tipnalpad-in capital of Kds 50,000,000. The Decemoer 31. 2.019, U.S colla-remeasured bsiance shect reported a negative paiance inictalned farnings of $147,000 incudng a 2019 remeasurement loks The Perember 21, 2019, US: dollac-tranclated balance sheent reported retained eamiegn of \$22,500. The Deonmber 31 , 2019, cumulative trandiation adfustrient wan negative $202,500 (Dabit balance) (Amounts to be deductsed and negothit amodris should be indicatod whith a minus sign.) Tramtatin the Caech karuna financial statements at December. 31, 2020 assuming the U.5. bollar is the functional aurnwey. Rahona has no long term debt. instead, it has common stock of Kis 20,000,000 and additional paid-in coptal of kies 50,000,000. The December 31, 2019, U.S. dellar-remeasured balance sthet reperted a negative balance in ruta mind earnings of $147,000 fincluding a 2019 remeasurement loss). (Amounts to be deducted and negathe arivounta should be indicated whth a fainus sign+)
