A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,400 to the subsidiary on account for $30,000 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994. (a1) Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit. (Round answers to O decimal places, e.g. 5.125.) Inventory Accounts Payable
A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,400 to the subsidiary on account for $30,000 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994. (a1) Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit. (Round answers to O decimal places, e.g. 5.125.) Inventory Accounts Payable
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 13QE
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![A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year
the parent company sold inventory that had cost $24,400 to the subsidiary on account for $30,000 when the exchange rate was
$0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the
fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994.
(a1)
Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet.
The entity's functional currency is the Martian Credit. (Round answers to O decimal places, e.g. 5.125.)
Inventory
Accounts Payable
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e4c7cf1-c565-49d5-a558-575800239393%2F4e29336f-c79f-4bf9-810b-9d307d515812%2Fsjmxjwj_processed.png&w=3840&q=75)
Transcribed Image Text:A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year
the parent company sold inventory that had cost $24,400 to the subsidiary on account for $30,000 when the exchange rate was
$0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the
fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $0.4994.
(a1)
Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet.
The entity's functional currency is the Martian Credit. (Round answers to O decimal places, e.g. 5.125.)
Inventory
Accounts Payable
$
$
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