Instructions: Read the case and answer the following questions. Do not repeat the questions. Show your answers and supporting computations.

Facts of the case: ABC Corporation has had operations in country X for 10 years. Assume that through the end of 2018 Country X has always been considered to be a highly inflationary economy ans ABC has used the US dollar as its functional currency. However, beginning January 1, 2019 Country X no longer meets the definition of a highly inflationary economy and ABC, after analyzing the factors. has determined that it will use the local currency as the functional currency.

On January 1, 2012 ABC acquired a building in Brazil for local currency 20,000,000. Assume 20 year useful life using straight line depreciation and no salvage value. the following direct exchange rates were in effect.

January 1, 2012 spot rate: 1 FC =.90US

January 1, 2019 spot rate: 1 FC = .60US

December 31, 2019 spot rate: 1 FC = .50US

Average rate 2019: 1 FC = .55US

Answer the following questions:

1. Find FASB Codification Section that deals with this question; specifically what happens when a country which was previously considered as highly inflationary, no longer meets that criteria. " cut and paste" the section by ###-##-## and briefly summarize in your own words what it says.

2. what is the amount in US dollars of depreciation expense that will be reported by ABC for 2019, Show a computation,

3 What is the amount in US dollars of Buildings ( net of accumulated depreciation) that will be reported by ABC on December 31, 2019. Show computation.