Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show all work and calculations. On January 1, 20X8. Cayane Inc. purchased 90% of an German firm Brosch Manufacturing when Brosch's equity consisted of
Please show all work and calculations.
On January 1, 20X8. Cayane Inc. purchased 90% of an German firm Brosch Manufacturing when Brosch's equity consisted of the following Common stock Paid-in capital in excess of par 100,000 Retained earnings 500,000 euros 150.000 750.000 euros Cayane paid 810,000 euros for its 90% interest in Brosch. The excess over book value was attributed to a building with a 20-year useful life. Brosch reported net income for 20X8 of 150,000 euros The year-end cumulative translation adjustment is $10,000 credit Relevant exchange rates are as follows January 1, 20X8 euro S.65 December 31, 20X8 1 euro.68 20X8 average 1 euro .66 Required Prepare all the journal entries related to Cayane's investment in Brosch and all the necessary eliminating and adjusting entries for consolidation of Brosch, assuming the use of the simple equity method Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started