Hi, I need help with the attached problems. I need explanations on all of them that show how to do the problem.

I am using this to study for an exam tomorrow, so I need to understand.Thank you for your help.

1. Dyton's foreign subsidiary had a accounts payable account. The account's period ending balance was fc2,000, and there were no events affecting the account during the period. The account's ending balance was convertible into $14,000 based on the period ending conversion rate. Dyton analyzed the account and determined that there was a comprehensive income gain of $6,000 associated with the account. What was the direct exchange rate at the beginning of the period? a) 4.00:1 b) 3.00:1 c) 10.00:1 d) .25:1 The next two questions are based on the following information: Tangronte Co. acquired 80% of Gumone Inc. Gumone's land had a book value of fc300,000 and a fair value of fc500,000. The conversion rate at acquisition was 1.30:1. At the end of the fiscal year the rate was 1.10:1. 2. What was the reported dollar value of the land in the consolidated statement at the end of the fiscal year if the current method is used? a) b) c) d) 550,000 650,000 400,000 520,000 3. What was the reported dollar value of the land in the consolidated statement at the end of the fiscal year if the temporal method is used? a) b) c) d) 440,000 550,000 520,000 650,000 4. A foreign subsidiary's depreciation expense was reported in the parent's consolidated income statement as $6,000. The depreciable asset was bought when the direct exchange rate was 0.60:1. The purchase was made before the subsidiary was acquired by the parent. The exchange rate was 0.75:1 when the subsidiary was acquired. The average exchange rate this period was 0.85:1 and the ending exchange rate was 1.00:1. How much depreciation expense did the foreign subsidiary report in its own currency? The dollar is the functional currency. a) b) c) d) fc10,000 fc 8,000 fc 6,000 fc 7,500 5. Brolone Co. purchased 30 machines for 100 each when the exchange rate was $1.10 per British Pound. The company acquired 40 more machines for 120 each when the exchange rate was $1.30 per British Pound. The average exchange rate for the period was $1.25 per British Pound. What was the dollar cost of both purchases if the dollar is the functional currency? a) $9,540 b) c) d) $9,750 $9,180 $9,160 6. Orwarden Co. hedged a forecasted fc100,000 purchase. What is the impact of the hedge on the company's financial position as of the end of the period? Date of the hedge End of the period a) b) c) d) Spot Rate 0.95:1 0.94:1 Forward Rate 0.98:1 0.97:1 There is a $1,000 credit to other comprehensive income There is a $1,000 debit to other comprehensive income There is a $1,000 credit to income There is a $1,000 debit to income The next two questions are based on the following information: Nohorn Inc. acquired some machinery when the exchange rate was 2.00:1 in February, 2009. The company depreciated the asset over several years. The starting rate for 2011 was 2.20:1. The average rate for 2011 was 2.25:1 and the ending rate for 2011 was 2.30:1. Imagine that the machinery was acquired when the rate was 2.10:1 rather than 2.00:1. 7. a) b) c) 8. a) b) c) What impact would this have had on income in 2011 using the current method? No impact Income would be lower Income would be higher What impact would this have had on income in 2011 using the temporal method? No impact Income would be lower Income would be higher The next two questions are based on the following information: Hogan acquired fc100,000 of inventory (incurring an account payable) when the spot exchange rate was 2.00:1. Payment was due in two months. The company hedged its payable obligation immediately (the forward rate was 2.08:1). After one month the spot rate was 1.94:1 and the forward rate was 1.97:1. 9. was used? a) b) c) d) 10. was used? What was the net impact on income due to this hedge if fair value hedge accounting No impact $5,000 gain $5,000 loss $11.000 loss What was the net impact on income due to this hedge if cash flow hedge accounting a) b) c) d) e) 11. a) b) c) d) e) No impact $9,000 expense $5.000 loss $4,000 expense $5,000 gain Which of the following hedging related statements is not true. Fair value hedging leads to more variability in income than cash flow hedging Upon completion of a cash flow hedge, the related AOCI equals zero Fair value hedging is technically required when hedging commitments Cash flow hedging is used for forecasted events All of the statements are true 12. Elston Inc. owns a subsidiary located in Italy. The subsidiary's owners' equity is 1,500,000. The subsidiary has 2,000,000 in monetary assets and 2,500,000 in monetary liabilities. The dollar has weakened during the current year. Which of the following statements accurately shows the nature of the impacts on owners' equity when converting subsidiary's financial statements into dollars? a) Current method: Increase in Owners' Equity; Temporal Rate method: Increase in Owners' Equity b) Current method: Increase in Owners' Equity; Temporal Rate method: Decrease in Owners' Equity c) Current method: Decrease in Owners' Equity; Temporal Rate method: Increase in Owners' Equity d) Current method: Decrease in Owners' Equity; Temporal Rate method: Decrease in Owners' Equity 13. A foreign company acquired some land for fc200,000 when the exchange rate was $3.00:fc. A U.S. company acquired 80% the foreign company when the exchange rate was $2.00:fc. The transaction included a premium of fc50,000. All of the foreign company's assets and liabilities had fair values equal to their book values except for the land. The land's fair value was fc250,000. What value, in dollars, will the U.S. company report for the land when it consolidates the acquisition? a) b) c) d) $480,000 $500,000 $400,000 $750,000 14. Dounone Inc. acquired some inventory for fc400,000 and recorded a payable when the exchange rate was $.50:1. The rate changed to $.45:1. What was the impact on the financial statements? a) b) c) d) Income Statement $20,000 loss $20,000 loss $20,000 gain $20,000 gain Balance Sheet $20,000 increase in payable $20,000 increase in inventory $20,000 decrease in payable $20,000 decrease in inventory 15. Truton Co. acquired a call option at market to cover an fc10,000 obligation when the spot exchange rate was $1.80:1. The spot rate climbed to $2.25 at the end of the month and then fell to $2.10 at maturity. The time value per unit was $0.020 at issue, $0.015 at the end of the month and $0.00 at maturity. What is the value on the call option at issue and at the end of the month? a) b) c) d) At Issue $0 $200 $200 $0 End of the Month $2,650 $2,650 $2,500 $2,500 16. Depreciation expense (in euros) was 220. The asset being depreciated was acquired several years ago in 2010. The 2010 exchange rate was $.90:. The average exchange rate this year was $1.05: while the year end rate was $1.10:. The dollar value depreciation expense reported this year was a) b) c) d) Temporal Method $198 $198 $231 $242 Current Method $242 $231 $198 $231 The next two questions are based on the following information: Valine Inc. acquired machinery on April 1 for fc300 payable on June 30. On April 1 the spot rate was 2.00:1 and the futures rate (for delivery on June 30) was 2.10:1. On June 30, the spot rate was 2.20:1 17. a) b) c) 18. a) b) c) What are the dollar payment due if the company chooses the spot rate for payment? $660 $600 $630 What are the dollar payment due if the company hedges the payment? $660 $600 $630 19. On September 30, 2012, Symington Inc. entered into a firm sale commitment with an French retailer to deliver manufactured products on November 30, 2012. Concurrently, Symington hedged its commitment by selling 100,000 for delivery on January 31, 2013 (payment date). How much net sales revenue is recorded on delivery (net of the commitment)? September 30, 2012 November 30, 2012 December 31, 2012 January 31, 2013 a) $137,500 Spot Rate $1.280/ $1.320/ $1.290/ $1.340/ Forward rate for delivery on 1/31/2013 $1.250/ $1.305/ $1.280/ b) $132,000 c) $130,500 d) $126,500 20. Grabbrow Co. is a manufacturing company with positive net assets and negative net monetary assets. Its British subsidiary uses the pound as its functional currency and its Swiss subsidiary uses the dollar as its functional currency. Grabbrow's financial statements included a positive impact due to remeasurement and a positive impact due to translation. How did the dollar's value change relative to the English Pound and the Swiss franc? a) b) c) d) English Pound Dollar weakened Dollar weakened Dollar strengthened Dollar strengthened Swiss Franc Dollar weakened Dollar strengthened Dollar weakened Dollar strengthened The next two questions are based on the following information: Graybron reported $1,500,000 in goodwill (fc1,000,000) in a subsidiary on acquisition at the beginning of 2013 when the exchange rate was 1.50:1. During 2013, there was an fc 100,000 writedown of goodwill. The average rate for the year was 1.70:1 and the year end rate was 2.00: 21. a) b) c) d) e) What is year end goodwill if the current method is used? $1,330,000 $900,000 $1,800,000 $1,350,000 None of the above 22. a) b) c) d) e) What is year end goodwill if the temporal method is used? $1,350,000 $1,330,000 $1,800,000 $900,000 None of the above The next two questions are based on the following information: Elf Inc. had net monetary assets of negative fc400,000 on January 1, 2014 During 2014, the company sold fc510,000 of product. Its cost of goods sold was fc300,000. Selling expenses were fc150,000. The inventory that was sold in 2014 was acquired in 2013. The dollar is the functional currency. Start rate (1/1/2014) Purchase of inventory (2013) Average rate (2014) 23. a) $60,000 .70:1 .75:1 .65:1 What was 2014 dollar income before remeasurement? b) c) d) e) $39,000 $9,000 $27,000 None of the above 24. What is ending net monetary assets (in dollars) before adjustment for any year end exchange rate? a) b) c) d) e) Negative $26,000 Negative $40,000 $40,000 Negative $46,000 None of the above The next two questions are based on the following information: During 2014, Elf Inc. sold fc510,000 of product. Its cost of goods sold was fc300,000. Selling expenses were fc150,000. The inventory that was sold in 2014 was acquired in 2013. The foreign currency is the functional currency. Purchase of inventory (2013) Average rate (2014) 25. a) b) c) d) e) .75:1 .65:1 What is 2014 dollar income? $60,000 $39,000 $9,000 $27,000 None of the above 26. What would 2014 dollar income have been if the dollar were weaker than reported in the last question? a) Income would have been higher b) Income would have been lower c) Income would not be affected The next four questions are based on the following information: Salsbury Inc. owns 80% of Brogan and uses the current method to report its investment. Salsbury's 2012 period beginning investment in subsidiary account was fc2,600,000 (before conversion to dollars). Brogan's 2012 beginning owners' equity was fc2,000,000. Brogan earned fc700,000 during 2012. The January 1, 2012 exchange rate was $1.50:1, the average rate for 2012 was $1.55:1 and the December 31, 2012 exchange rate was 1.60:1. 27. a) b) c) d) How much dollar income did Brogan (the subsidiary) earn during 2012? $1,085,000 $1,050,000 $1,120,000 None of the above 28. What was the foreign exchange adjustment (comprehensive income adjustment) for Brogan's owners' equity for 2012? (This is in the subsidiary's financial statement converted to dollars.) a) b) c) d) e) $4,085,000 $4,320,000 $235,000 $35,000 None of the above 29. How much dollar income did Salsbury (the parent) report during 2012? (There are no fair value adjustments.) a) b) c) d) e) $1,085,000 $868,000 $840,000 $896,000 None of the above 30. What was the foreign exchange adjustment (comprehensive income adjustment) for Brogan's owners' equity for 2012? (This is in the subsidiary's financial statement converted to dollars.) a) b) c) d) e) $1,085,000 $868,000 $235,000 $188,000 None of the above