Prepare a schodule 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 ing Prepare a schedule showing the differential allocation and amortization for 201. The schedule should present both Canad 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 rest of answers to nearest whole dollar. Show less Journal entry worksheet Record the amortization of the differential. Note: Enter debits before credits. Provide the entry required by par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. do value. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round 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. Problem 12-16 (Static) Parent Company Journal Entries and Translation LO 12.4 On January 1.20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $120.000.0. January 1,20X1, the direct exchange rate for the Canadian dollar (C\$) was C\$1 $0.80. $0 outh Bay's book value on January 1, 201. was C\$90,000. The fair value of South 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 differentiol is attributabie to a trademark, which wilt be amortized over 10 years. Duting 20X1, South Bay earned C\$20,000 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=$075. 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=$070. The average exchange rate during 201 was C\$1 = \$0.75. Management has determined that the Canodian 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 odjustment for South Bay as a result of the translation of the subsidiary's accounts from Canadian dollars to US. 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, dollarequivalent value. Record the dividend from the foreign subsidiary. Note: Enter debits before credits. Record the equity in income of the subsidiary. Note: Enter debits before credits. Journal entry worksheet Record the acquisition of South Bay Company. Note: Enter debits before credits. 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 t 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. Round you answer to nearest. whole dollar. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar, Amounts to be deducted should be entered with a minus sign. Show les Journal entry worksheet A B C Record the entry to recognize the translation adjustment on the differential. Note: Enter debits before credits. Prepare a schodule 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 ing Prepare a schedule showing the differential allocation and amortization for 201. The schedule should present both Canad 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 rest of answers to nearest whole dollar. Show less Journal entry worksheet Record the amortization of the differential. Note: Enter debits before credits. Provide the entry required by par to restate the C$8,000 in the Foreign Currency Units account into its year-end U.S. do value. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round 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. Problem 12-16 (Static) Parent Company Journal Entries and Translation LO 12.4 On January 1.20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $120.000.0. January 1,20X1, the direct exchange rate for the Canadian dollar (C\$) was C\$1 $0.80. $0 outh Bay's book value on January 1, 201. was C\$90,000. The fair value of South 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 differentiol is attributabie to a trademark, which wilt be amortized over 10 years. Duting 20X1, South Bay earned C\$20,000 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=$075. 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=$070. The average exchange rate during 201 was C\$1 = \$0.75. Management has determined that the Canodian 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 odjustment for South Bay as a result of the translation of the subsidiary's accounts from Canadian dollars to US. 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, dollarequivalent value. Record the dividend from the foreign subsidiary. Note: Enter debits before credits. Record the equity in income of the subsidiary. Note: Enter debits before credits. Journal entry worksheet Record the acquisition of South Bay Company. Note: Enter debits before credits. 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 t 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. Round you answer to nearest. whole dollar. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar, Amounts to be deducted should be entered with a minus sign. Show les Journal entry worksheet A B C Record the entry to recognize the translation adjustment on the differential. Note: Enter debits before credits