QUESTION 2 Incorrect Mark 0.00 out of 6.00 Flag question Translation and Remeasurement of Depreciable Assets Massmart, the second largest retailer in Africa, is a subsidiary of Wal-Mart Inc., a U.S company. Massmart reports its accounts in its local currency, the rand (R). Wal-Mart's fiscal year ends January 31. On February 1, 2018, Massmart reports facilities with original cost of R500 million and accumulated depreciation of R280 million in its noncurrent assets, as follows: Buildings acquired at a cost of R175 million when the exchange rate was $0.15/R, with accumulated depreciation of R100 million. The buildings are being depreciated on a straight-line basis over 25 years Equipment acquired at a cost of R325 million when the exchange rate was $0.12/R, with accumulated depreciation of R180 million. The equipment is being depreciated on a straight-line basis over 10 years Additional exchange rates February 1, 2018 Average for fiscal 2019 January 31, 2019 $0.10 0.08 0.07 Massmart still holds these facilities at January 31, 2019 Required a. Assume that Massmart's functional currency is the rand. Calculate Massmart's translated facilities, at cost, and related accumulated depreciation, at January 31 2019, and its translated depreciation expense for fiscal 2019 b. Now assume that Massmart's functional currency is the U.S. dollar. Calculate Massmart's remeasured facilities, at cost, and related accumulated depreciation, at January 31, 2019, and its remeasured depreciation expense for fiscal 2019 Enter answers using all zeros (do not abbreviate to millions or thousands) a. Translated b. Remeasured Facilities, at cost Accumulated depreciation $ Depreciation expense Check QUESTION 2 Incorrect Mark 0.00 out of 6.00 Flag question Translation and Remeasurement of Depreciable Assets Massmart, the second largest retailer in Africa, is a subsidiary of Wal-Mart Inc., a U.S company. Massmart reports its accounts in its local currency, the rand (R). Wal-Mart's fiscal year ends January 31. On February 1, 2018, Massmart reports facilities with original cost of R500 million and accumulated depreciation of R280 million in its noncurrent assets, as follows: Buildings acquired at a cost of R175 million when the exchange rate was $0.15/R, with accumulated depreciation of R100 million. The buildings are being depreciated on a straight-line basis over 25 years Equipment acquired at a cost of R325 million when the exchange rate was $0.12/R, with accumulated depreciation of R180 million. The equipment is being depreciated on a straight-line basis over 10 years Additional exchange rates February 1, 2018 Average for fiscal 2019 January 31, 2019 $0.10 0.08 0.07 Massmart still holds these facilities at January 31, 2019 Required a. Assume that Massmart's functional currency is the rand. Calculate Massmart's translated facilities, at cost, and related accumulated depreciation, at January 31 2019, and its translated depreciation expense for fiscal 2019 b. Now assume that Massmart's functional currency is the U.S. dollar. Calculate Massmart's remeasured facilities, at cost, and related accumulated depreciation, at January 31, 2019, and its remeasured depreciation expense for fiscal 2019 Enter answers using all zeros (do not abbreviate to millions or thousands) a. Translated b. Remeasured Facilities, at cost Accumulated depreciation $ Depreciation expense Check
