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$0.10Average for fiscal 20190.08January 31, 20190.07

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).

Translation and Romllsurllnlnl: of Dlpmilble Ass-ht l'u'lassmart. the second largat retailer in Africa. is a subsidiaryofWaI-Mart Inc.. a US. company. Massmart reports its accounts in its local currency. the rand [R]. WaI-l'u'lart's scal year ends January 31. [in Febmary "I . 201B. Massmart reports facilib'es with original cost of RSIJID million and accumulated depreciation of R231] million in its noncu rrent asseis. as follows: . Buildings acquired at a cost of R1 ?5 million Irrhen the exchange rate was $0.15.!R. wit accumulated depreciation of R1 III million. The buildings are being depreciated on a straight-line basis over 25 years. . Equipment acquired at a cost of R325 million Iwhen the exchange rate was $0.12J'R. with accumulated depreciation of R1 30 million. The equipment is being depreciated on a straight-line basis over 1Dyears. Addiijonal exchange rates: February 1. 201B ill\") Average for scal 2&19 I163 January 31. 2319 DD? l'u'lassmart still holds these facilities atJan uary 31. 2019. Required a. Assu me that Massmart's functional currency is the rand. Calculate l'u'lassmart's translated facilities. at cost. and related accumulated depreciation. atja nuar'yr 31. 2019.. and its translated depreciation expense for scal 2019. b. Now assume that Massmart's functional currency is the US. dollar. Calculate Massmart's remeasured facilities. at cost. and related accumulated depreciation. at Ja nuaryr 31. 2019. and its remeasured depreciation expense for scal 201 9. Enter answers using all zeros {do not abbreviate to millions or thousands}. LTI'II'IIIHII b. Emu-d Facilitiu. at cost 5 D It 5 Ill 2 Aocumulaised depreciation 5 D K 5 D H Depreciationexpense 5 D K 5 D x