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How do I calculate the net income with this information? On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland
How do I calculate the net income with this information?
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 75,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Credit Debit SFr 8,809 22,000 5,300 29,000 104,000 Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total SFr 10,400 13,000 51,500 75,000 151,600 73,000 10,400 32,000 17,000 SFr 301,500 SFr 301,500 Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,300 payable to SunTime. 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year's depreciation is taken in the year of acquisition. The equipment was acquired on March 1. 4. The dividends were declared and paid on November 1Step by Step Solution
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