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Mary Corporation, a U.S. corporation, formed a British subsidiary on January 1, 2019 by investing 550,000 British pounds () in exchange for all of the
Mary Corporation, a U.S. corporation, formed a British subsidiary on January 1, 2019 by investing 550,000 British pounds () in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Tony Corporation, purchased real property on April 1, 2019 at a cost of 500,000, with 100,000 allocated to land and 400,000 allocated to the building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The U.S. dollar is Tony's functional currency, but it keeps its records in pounds. The British economy does not experience high rates of inflation. Exchange rates for the pound on various dates are: January 01, 2019 1 = $1.61 1 = $1.62 April 01, 2019 December 31, 2019 = 1 = $1.67 2019 average rate 1 = $1.64 Tony's adjusted trial balance is presented below for the year ended December 31, 2019. In Pounds Debits: Cash 100,000 Accounts receivable Notes receivable 36,000 49,500 200,000 Building Land 50,000 Depreciation expense 3,750 Other expenses 57,500 Salary expense 104,000 Total debits 600, 750 Credits Accumulated depreciation 3,750 Accounts payable 50,000 Common stock 275,000 Retained earnings 0 Equity adjustment 0 Sales revenue 272,000 Total credits 600,750 Instructions: Compute the amount of building using remeasurement working paper. Choose... - Compute the amount of depreciation expense using remeasurement working paper. Choose... Compute the amount of cash using remeasurement working paper Choose... Compute the amount of accounts receivable using remeasurement working paper. Compute the amount of net income under temporal method. Compute the amount of notes receivable using remeasurement working paper. $324,000 $82,665 $708,710 $182,460 $60,120 $6,075 $167,000 $7,315 Calculate the amount of credit/debit differential under temporal method. Compute the amount of total assets using remeasurement working paper
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