Entity A owns majority of the outstanding ordinary shares of Entity B which is operating in United States of America wherein the functional currency is the USA $. However, the presentation currency of Entity B is the Philippine Peso because that is the presentation currency of Entity A. For the year ended December 31, 2020, Entity B presented its Statement of Financial Position in its functional currency of USA $:

Current assets$10,000Current liabilities$10,000

Noncurrent assets40,000Noncurrent liabilities20,000

Ordinary share capital 5,000

Preference share capital8,000

Retained earnings7,000

Total Assets$50,000Total Liabilities and shareholders $50,000

The ordinary shares are issued on January 1, 2019 while the preference shares are issued on July 1, 2019.

B reported $1,000 net income during 2020 and declared dividends in the amount of $200 on December 1, 2020.

The translated amount of retained earnings on December 31, 2019 is P300,000.

The following direct exchange rates are provided:

January 1, 2019

P40

July 1, 2019

42

December 31, 2019

43

December 1, 2020

41

December 31, 2020

45

Average rate 2020

44

98.What is the amount of net assets in US dollars on December 31, 2019?

A.19,200

B.20,000

C.19,000

D.20,200

99.What amount of translation gain as component of other comprehensive income should be presented in the of statement of comprehensive income for the year ended December 31, 2020?

A.38,600

B.39,200

C.40,400

D.41,800

100.What is the translated retained earnings balance on December 31, 2020?

A.300,000

B.335,800

C.344,000

D.281,800

101.What is the cumulative translation credit that should to be presented in the statement of financial position on December 31, 2020?

A.25,400

B.28,200

C.26,800

D.24,600

I need the following solutions for the questions stated above.