Accounting for Business Combinations: ABC Company, a Philippine company, holds a 70% interest in Honesty Company, a Japanese Company. This ownership interest was acquired when Honesty was initially incorporated. The trial balance of Honesty at December 31, 2022 is as follows (see image below). The beginning inventory was 70,000 yen. The ordinary shares were issued four years ago when the exchange rate was P0.35, same with the plant and equipment. The weighted average exchange rate for 2022 was P0.53. The translated amount of retained earnings beginning was P22,500. The spot rate for the yen in various dates was: January 1, 2022 - P0.48 and December 31, 2022 - P0.58. Apply the current rate method. Answer the following subquestion: a. How much is the Cumulative Translation Adjustment at December 31, 2022? b. How much is Translated Amount of Assets? c. How much is Translated Amount of Net Income? _____________
Accounting for Business Combinations:
ABC Company, a Philippine company, holds a 70% interest in Honesty Company, a Japanese Company. This ownership interest was acquired when Honesty was initially incorporated. The
The beginning inventory was 70,000 yen. The ordinary shares were issued four years ago when the exchange rate was P0.35, same with the plant and equipment. The weighted average exchange rate for 2022 was P0.53. The translated amount of
Answer the following subquestion:
a. How much is the Cumulative Translation Adjustment at December 31, 2022?
b. How much is Translated Amount of Assets?
c. How much is Translated Amount of Net Income?
_____________
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