7. A foreign subsidiary of the Bart Corporation has certain balance sheet accounts on December 31, 20X2. Information relating to theseaccounts in U.S. dollars is as follows:Restated atCurrent RatesHistorical RatesMarketable (Available-for-Sale and Trading)securities$ 75,000$ 85,000Inventories, carried at average costRefundable depositsGoodwill600,00025,00055,000$ 755,000700,00030,00070,000$ 885,000What total should be included in Bart's balance sheet on December 31, 20X2, as a result of the preceding information?Foreign Currencyis Functional Currency$780,000$870,000$755,000$880,000U.S. Dollaris Functional Currency$870,000$755,000$780,000$880,000 x

In multinational business operations, the valuation of foreign subsidiary assets and liabilities is…

Answered: 7. A foreign subsidiary of the Bart…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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AU.S. company owns an 80.s interest in a company located on Mars, Martian currency is called the Martian Cedic. During the year the parent company sold inventory that had cost $24,900 to the subsidiary on account for $29,100 when the echange rate was fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year end was 50.4994(a1) Compute the amounts that would be reported for the inventory and accounts payable in the wbsidiarys innslated balance shect. The entity's functional currency is the Martian Credit. (Round answers to O decimal ploces es, 5, 125)
The following balance sheet accounts of a foreign subsidiary at December 31, 2017, have been translated into U.S. dollars as follows: Translated at Current Rates Historical Rates Accounts receivable, current $ 600,000 $ 600,000 Accounts receivable, long-term 300,000 324,000 Inventories carried at market 180,000 198,000 Goodwill 190,000 220,000 $1,270,000 $ 1,402,000 What total should be included in the translated balance sheet at December 31, 2017, for the above items? Assume the U.S. dollar is the functional currency. $1,354,000 $1,270,000 $1,288,000 $1,300,000
15.7A
H2.
A U.S. company's foreign subsidiary had these amounts in local currency units (LCU) in 2024: Cost of goods sold Beginning inventory Ending inventory LCU 5,230,000 536,000 622,000 The average exchange rate during 2024 was $1.30 = LCU 1. The beginning inventory was acquired when the exchange rate was $1.10 = LCU 1. Ending inventory was acquired when the exchange rate was $1.40 LCU 1. The exchange rate on December 31, 2024, was $1.45 = LCU 1. Required: Assuming that the foreign country is highly inflationary, determine the amount at which the foreign subsidiary's cost of goods sold should be reflected in the U.S. dollar income statement. Cost of goods sold
i need the answer quickly
Certain balance sheet accounts of a foreign subsidiary of Roman, Inc., on December 31, 2010, have been translated into Philippine peso as follows: Translated at Current Rates P240,000 P200,000 85,000 80,000 150,000 170,000 P475,000 P450,000 The subsidiary's functional currency is the currency of the country in which it is located. What total amount should be included in Roman's December 31, 2010 consolidated balance sheet for the above accounts? Note receivable, long term. Prepaid rent Patent P450,000 P455,000 P475,000 P495,000 Historical Rates
7. XYZ, a US company has a subsidiary in Korea. The Korean sub sells inventory to a Japanese company with the sale denominated in US dollars. Between the date of sale and the date the receivable is collected the Korean won strengthens 10% against the US dollar. Explain if there is a foreign exchange gain or loss or no FX impact and why Thank you

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