On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $121,500. On January 1, 20X1, the direct exchange rate for the Canadian dollar (C\$) was C\$1= \$0.81. South Bay's book value on January 1, 20X1, was C\$89,000. The fair value of South Bay's plant and equipment was C\$9,200 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, South Bay earned C$16,000 in income and declared and paid C$8,000 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 201 was C$1=$0.76. Management has determined that the Canadian dollar is South Bay's appropriate functional currency. Required: a. Prepare a schedule showing the differential allocation and amortization for 201. The schedule should present both Canadian dollars and U.S. dollars. b. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 201 for its investment in South Bay for the following items: c. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's 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 subsidiary's accounts. d. Provide the entry required by Par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. dollar-equivalent value. Complete this question by entering your answers in the tabs below. Prepare a schedule showing the differential allocation and amortization for 20X1. The schedule should present both Canadian dollars and U.S. dollars. Note: Amounts to be deducted should be entered with a minus sign. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar. On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for \$121,500. On January 1, 20X1, the direct exchange rate for the Canadian dollar (C) was C\$1 = \$0.81. South Bay's book value on January 1, 20X1, was C\$89,000. The fair value of South Bay's plant and equipment was C\$9,200 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, South Bay earned C$16,000 in income and declared and paid C$8,000 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 201 was C$1=$0.76. Management has determined that the Canadian dollar is South Bay's appropriate functional currency. Required: a. Prepare a schedule showing the differential allocation and amortization for 201. The schedule should present both Canadian dollars and U.S. dollars. b. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 201 for its investment in South Bay for the following items: c. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's 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 subsidiary's accounts. d. Provide the entry required by Par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. dollar-equivalent value. Complete this question by entering your answers in the tabs below. Prepare a schedule showing the differential allocation and amortization for 201. The schedule should present both Canadian dollars and U.S. dollars. Note: Amounts to be deducted should be entered with a minus sign. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar. On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $121,500. On January 1, 20X1, the direct exchange rate for the Canadian dollar (C\$) was C$1=$0.81. South Bay's book value on January 1, 20X1, was C$89,000. The fair value of South Bay's plant and equipment was C$9,200 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, South Bay earned C$16,000 in income and declared and paid C$8,000 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 201 was C$1=$0.76. Management has determined that the Canadian dollar is South Bay's 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. b. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 201 for its investment in South Bay for the following items: c. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's 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 subsidiary's accounts. d. Provide the entry required by Par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. dollar-equivalent value. Complete this question by entering your answers in the tabs below. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 201 for its investment in South Bay for the following items: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar. On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $121,500. On January 1, 20X1, the direct exchange rate for the Canadian dollar (C\$) was C$1=$0.81. South Bay's book value on January 1, 20X1, was C\$89,000. The fair value of South Bay's plant and equipment was C\$9,200 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, South Bay earned C$16,000 in income and declared and paid C$8,000 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 31,201, the direct exchange rate is C$1= $0.64. The average exchange rate during 201 was C$1=$0.76. Management has determined that the Canadian dollar is South Bay's appropriate functional currency. Required: a. Prepare a schedule showing the differential allocation and amortization for 201. The schedule should present both Canadian dollars and U.S. dollars. b. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 201 for its investment in South Bay for the following items: c. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's 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 subsidiary's accounts. d. Provide the entry required by Par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. dollar-equivalent value. Complete this question by entering your answers in the tabs below. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's 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 subsidiary's accounts. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Amounts to be deducted should be entered with a minus sign. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar. On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $121,500. On January 1,201, the direct exchange rate for the Canadian dollar (C\$) was C$1=$0.81. South Bay's book value on January 1, 20X1, was C\$89,000. The fair value of South Bay's plant and equipment was C\$9,200 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, South Bay earned C$16,000 in income and declared and paid C$8,000 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 31,201, the direct exchange rate is C$1= $0.64. The average exchange rate during 201 was C$1=$0.76. Management has determined that the Canadian dollar is South Bay's 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. b. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 201 for its investment in South Bay for the following items: c. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's 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 subsidiary's accounts. d. Provide the entry required by Par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. dollar-equivalent value. Complete this question by entering your answers in the tabs below. Provide the entry required by Par to restate the C$8,200 in the Foreign Currency Units account into its year-end U.S. dollar-equivalent value. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar. Journal entry worksheet Record the parent's share (100%) of the translation adjustment from the translation of the subsidiary's accounts on December 31,201. Note: Enter debits before credits. On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $121,500. On January 1,201, the direct exchange rate for the Canadian dollar (C\$) was C$1=$0.81. South Bay's book value on January 1, 20X1, was C\$89,000. The fair value of South Bay's plant and equipment was C\$9,200 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, South Bay earned C$16,000 in income and declared and paid C$8,000 in dividends. The dividends were declared and paid in Canadian dollars when the exchange rate was C$1=$0.75. On December 31,201, Par continues to hold the Canadian currency received from the dividend. On December 31,201, the direct exchange rate is C$1= $0.64. The average exchange rate during 201 was C$1=$0.76. Management has determined that the Canadian dollar is South Bay's 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. b. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 201 for its investment in South Bay for the following items: c. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's 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 subsidiary's accounts. d. Provide the entry required by Par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. dollar-equivalent value. Complete this question by entering your answers in the tabs below. Prepare a schedule showing the differential allocation and amortization for 20X1. The schedule should present both Canadian dollars and U.S. dollars. Note: Amounts to be deducted should be entered with a minus sign. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar. Journal entry worksheet Record the exchange loss on the foreign currency units held on December 31,201. Note: Enter debits before credits