On January 1, 20X1, Par Company purchased all the outstanding stock of North Bay Company, located in Canada, for $145,800 On January 1, 20X1, the direct exchange rate for the Canadian dollar (C$) was C$1 $0 81 North Bays book value on January 1, 20X1, was C$81,000 The fair value of North Bays plant and equipment was C$10,000 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage value The remainder of the differential is attributable to a trademark, which will be amortized over 10 years During 20X1, North Bay earned C$15,000 in income and declared and paid C$8,500 in dividends The dividends were declared and paid in Canadian dollars when the exchange rate was C$1 $0 75 On December 31, 20X1, Par continues to hold the Canadian currency received from the dividend On December 31, 20X1, the direct exchange rate is C$1 $0 64 The average exchange rate during 20X1 was C$1 $0 76 Management has determined that the Canadian dollar is North Bays appropriate functional currency Required a Prepare a schedule showing the differential allocation and amortization for 20X1 The schedule should present both Canadian dollars and U S dollars (Round Exchange Rate answers to 2 decimal places and rest fo answers to nearest whole dollar ) b Par uses the fully adjusted equity method to account for its investment Provide the entries that it would record in 20X1 for its investment in North Bay for the following items (Round your answers to nearest whole dollar ) c Prepare a schedule showing the proof of the translation adjustment for North Bay as a result of the translation of the subsidiarys accounts from Canadian dollars to U S dollars Then provide the entry that Par would record for its share of the translation adjustment resulting from the translation of the subsidiarys accounts (Round Exchange Rate answers to 2 decimal places and rest fo answers to nearest whole dollar ) d Provide the entry required by Par to restate the C$8,500 in the Foreign Currency Units account into its year end U S dollarequivalent value (Round your answers to nearest whole dollar )

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On January 1, 20X1, Par Company purchased all the outstanding stock of North Bay Company, located in Canada, for $145,800. On January 1, 20X1, the

On January 1, 20X1, Par Company purchased all the outstanding stock of North Bay Company, located in Canada, for $145,800. On January 1, 20X1, the direct exchange rate for the Canadian dollar (C$) was C$1 = $0.81. North Bays book value on January 1, 20X1, was C$81,000. The fair value of North Bays plant and equipment was C$10,000 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage value. The remainder of the differential is attributable to a trademark, which will be amortized over 10 years.

During 20X1, North Bay earned C$15,000 in income and declared and paid C$8,500 in dividends. The dividends were declared and paid in Canadian dollars when the exchange rate was C$1 = $0.75. On December 31, 20X1, Par continues to hold the Canadian currency received from the dividend. On December 31, 20X1, the direct exchange rate is C$1 = $0.64. The average exchange rate during 20X1 was C$1 = $0.76. Management has determined that the Canadian dollar is North Bays appropriate functional currency.

Required:

a.	Prepare a schedule showing the differential allocation and amortization for 20X1. The schedule should present both Canadian dollars and U.S. dollars. (Round "Exchange Rate" answers to 2 decimal places and rest fo answers to nearest whole dollar.)

b.	Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 20X1 for its investment in North Bay for the following items: (Round your answers to nearest whole dollar.)

Prepare a schedule showing the proof of the translation adjustment for North Bay as a result of the translation of the subsidiarys accounts from Canadian dollars to U.S. dollars. Then provide the entry that Par would record for its share of the translation adjustment resulting from the translation of the subsidiarys accounts. (Round "Exchange Rate" answers to 2 decimal places and rest fo answers to nearest whole dollar.)

d.	Provide the entry required by Par to restate the C$8,500 in the Foreign Currency Units account into its year-end U.S. dollarequivalent value. (Round your answers to nearest whole dollar.)