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Rolfe Company (a US-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary
Rolfe Company (a US-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's) Cash NGN 16,750 Notes payable 11,500 Common stock NGN 20,300 21,900 10,950 Land Building ,150 Retained earnings 41,500 20750 NGN 53,150 NGN 53.150 The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place 2017 Feb. 1 May 1 June 1 Aug. 1 Sept.1 Oct. 1 Nov. 1 Dec. 1 Dec. 31 Paid 8,150,000 NGN on the note payable Sold entire inventory for 17,500,000 NGN on account Sold land for 6,150,000 NGN cash. Collected all accounts receivable. Signed long-term note to receive 8,150,000 NGN cash. Bought inventory for 20,150,000 NGN cash. Bought land for 3,150,000 NGN on account Declared and paid 3,150,000 NGN cash dividend to parent Recorded d for the entire year of 2,075,000 NGN The U.S dollar (S) exchange rates for 1 NGN are as follows 2008 2010 August 1, 2016 December 31, 2016 February 1, 2017 May 1, 2017 June 1, 2017 August 1, 2017 September 1, 2017 October 1, 2017 November 1, 2017 December 1, 2017 December 31, 2017 Average for 2017 NGN 1S 00063 0.0057 10.0077 10.0079 0.0081 10.0083 0.0085 - 0.0089 s 0.0091 10.0093 0.0095 10.0097 0.0114 0.0104 a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017? b. Assuming the U.S $ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017? (Input all amounts as positive. Enter amounts in whole dollars.)
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