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Please help to solved it, I will give u thumbs uppp On January 1, 20X9. P acquired all of the outstanding stock of S, a
Please help to solved it, I will give u thumbs uppp
On January 1, 20X9. P acquired all of the outstanding stock of S, a British Company, for $560,000. S's net assets on the date of acquisition were 400,000 pounds (). On January 1, 20X9, the book and fair values of the S's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and trademarks. The fair value of S's property, plant, and equipment exceeded its book value by $25,000. The remaining useful life of S's equipment at January 1, 20X9, was 10 years. The remainder of the differential was attributable to a trademark having an estimated useful life of 5 years. S's trial balance on December 31, 20X9, in pounds, follows: Credits Debits 80,000 170,000 120,000 330,000 Cash Accounts Receivable (net) Inventory Property, Plant, and Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total 100.000 120,000 90,000 150,000 250,000 420,000 300,000 90,000 30,000 10,000 1,130,000 1.130.000 Additional Information 1. S uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 20X9, and ending inventory was acquired on December 28, 20X9. Purchases of 300,000 were made evenly throughout 20x9. 2. S acquired all of its property, plant, and equipment on March 1, 20X9, and uses straight-line depreciation. 3. S's sales were made evenly throughout 20X9, and its operating expenses were incurred evenly throughout 20X9. 4. The dividends were declared and paid on November 1, 20X9. 5. P's income from its own operations was $150,000 for 20X9, and its total stockholders' equity on January 1, 20X9, was $1,000,000. P declared $50,000 of dividends during 20X9. 6. Exchange rates were as follows: March 1, 20X7 December 31, 20X8 January 1, 20X9 November 1, 20X9 December 28, 20X9 December 31, 20X9 Average for 20X9 1 = $ 1.20 1 = $ 1.24 1 = $ 1.24 1 $ 1.25 1 $ 1.30 1 = $ 1.33 1 = $ 1.28 = After translation process, determine the amount of: Cash [Choose] Account receivable [Choose Inventory [Choose] Retained earnings [Choose ] Sales [Choose Retained earnings [Choose ] Sales [ChooseStep by Step Solution
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