Question
Quadros Incorporated, a Portuguese firm was acquired by a U.S. company on January 1, 2023. Selected account balances are available for the year ended December
Quadros Incorporated, a Portuguese firm was acquired by a U.S. company on January 1, 2023. Selected account balances are available for the year ended December 31, 2024, and are stated in Euro, the local currency.
| Sales | 400,000 |
|---|---|
| Inventory (bought on February 1, 2024) | 20,000 |
| Equipment (bought on January 1, 2023) | 90,000 |
| Dividends (paid on September 1, 2024) | 20,000 |
| Accumulated depreciationEquipment 12/31/24 | 45,000 |
| Depreciation expenseEquipment, 2024 | 9,000 |
Relevant exchange rates for 1 Euro are given below:
| January 1, 2023 | $ 0.91 |
|---|---|
| January 1, 2024 | 0.93 |
| February 1, 2024 | 0.94 |
| September 1, 2024 | 0.97 |
| December 31, 2024 | 1.01 |
| 4th quarter average, 2023 | 0.90 |
| 4th quarter average, 2024 | 0.98 |
| Average, 2024 | 0.95 |
Assume the functional currency is the U.S. Dollar; compute the U.S. income statement amount for depreciation expense for 2024.
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
Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
