File Tools New Microsolt Word Document - Word - 0 Depreciation expense 600.000 North Rustico Corp purchased all the outstanding shares Tuna Corp. tor 13 million Tunisian Dinars (TND) on December 31, Year 1. On that date, the fair values of Tuna's assets and liabilities were equal to their carrying amounts. The Year 2 and Year 1 comparative balance sheets for Tuna are below: Balance Sheet Other expenses 2380,000 11,100,000 Ner income 1,500,000 December 31 Year 2 Year 1 Current monetary at TNT 10,780,000 TND 9,500,000 Other information: Exchange rates Inventory 1.900.COD 2,400,000 Dec 31, Year1 IND1 - 90.52 Plant and equipment 6.600.000 7.200.000 Sept. 30, Year 2 IND1 - 30.62 19.12 1920 Dec 31, Year 2 INDI - 30.65 Current monetary Liabilities 1,900,000 2.400,000 Average for Year 2 INDI- $ 0.58 Bonds payable Dec. 31. Year 1,000,000 1.800.000 CAT 5,000,000 3,000,000 Retained earnings 7.000.000 19,180.000 19.200.000 Inname Statement Year ended December 31, Year 2 Tuna declared and paid dividends on September 30, Year 2. The inventory on December 31, Year 2, was purchased when the exchange rate was TND1 $0.63. Required: a) Assume Tuna Corp.'s functional currency is the Canadian dollar. i. Calculate the Year 2 exchange gain or loss resulting from the translation of Tuna's fi- nancial statements. ii. Prepare translated financial statements for Year 2. b) Assume Tuna Corp's functional currency is the Tunisian dinar. i. Calculate the Year 2 exchange gain or loss resulting from the translation of Tuna's fi- nancial statements. ii. Prepare translated firuancial statements for Year 2. Sales IND 16,000,000 Inventory, lan 1 2.400.000 Parchases 10,840.00 Inventory, Dec. 31 (1.600,000 SCI-3 100 A4 300 PM 7/21/2001 File Tools New Microsolt Word Document - Word - 0 Depreciation expense 600.000 North Rustico Corp purchased all the outstanding shares Tuna Corp. tor 13 million Tunisian Dinars (TND) on December 31, Year 1. On that date, the fair values of Tuna's assets and liabilities were equal to their carrying amounts. The Year 2 and Year 1 comparative balance sheets for Tuna are below: Balance Sheet Other expenses 2380,000 11,100,000 Ner income 1,500,000 December 31 Year 2 Year 1 Current monetary at TNT 10,780,000 TND 9,500,000 Other information: Exchange rates Inventory 1.900.COD 2,400,000 Dec 31, Year1 IND1 - 90.52 Plant and equipment 6.600.000 7.200.000 Sept. 30, Year 2 IND1 - 30.62 19.12 1920 Dec 31, Year 2 INDI - 30.65 Current monetary Liabilities 1,900,000 2.400,000 Average for Year 2 INDI- $ 0.58 Bonds payable Dec. 31. Year 1,000,000 1.800.000 CAT 5,000,000 3,000,000 Retained earnings 7.000.000 19,180.000 19.200.000 Inname Statement Year ended December 31, Year 2 Tuna declared and paid dividends on September 30, Year 2. The inventory on December 31, Year 2, was purchased when the exchange rate was TND1 $0.63. Required: a) Assume Tuna Corp.'s functional currency is the Canadian dollar. i. Calculate the Year 2 exchange gain or loss resulting from the translation of Tuna's fi- nancial statements. ii. Prepare translated financial statements for Year 2. b) Assume Tuna Corp's functional currency is the Tunisian dinar. i. Calculate the Year 2 exchange gain or loss resulting from the translation of Tuna's fi- nancial statements. ii. Prepare translated firuancial statements for Year 2. Sales IND 16,000,000 Inventory, lan 1 2.400.000 Parchases 10,840.00 Inventory, Dec. 31 (1.600,000 SCI-3 100 A4 300 PM 7/21/2001
