BABA Corporation, a US Company, formed a subsidiary with a new company in France on January12020, by msting 400,000 Euro in exchange for all of the subsidiary's common stock. On July 1, 2020, the subsidiary purchased land for t00000 Euro and a building for 300,000 Euro. The building is being depreciated over a 40-year ife by the straight ne method The inventory is valued at historical cost The Euro is the subsidiarys functional currency and ns reporting cumency Exchange raes for the Euro on various dates were: January 1, 2020 July 1, 2020 December 31, 2020 1 Euro= $1.51 1 Euro$1.56 1 Euro = $1.53 1 Euro$1.52 2020average rate The subsidiary's adjusted trial balance shows the following balances 100,000 60,000 80,000 100,000 Cash Accounts receivable Inventory Land Building Accumulated depreciation Accounts payable Notes Payable 300,000 3,750 84,000 16,750 a00 000 Common stnrk 9 of 11 Next> Drou
BABA Corporation, a US Company, formed a subsidiary with a new company in France on January12020, by msting 400,000 Euro in exchange for all of the subsidiary's common stock. On July 1, 2020, the subsidiary purchased land for t00000 Euro and a building for 300,000 Euro. The building is being depreciated over a 40-year ife by the straight ne method The inventory is valued at historical cost The Euro is the subsidiarys functional currency and ns reporting cumency Exchange raes for the Euro on various dates were: January 1, 2020 July 1, 2020 December 31, 2020 1 Euro= $1.51 1 Euro$1.56 1 Euro = $1.53 1 Euro$1.52 2020average rate The subsidiary's adjusted trial balance shows the following balances 100,000 60,000 80,000 100,000 Cash Accounts receivable Inventory Land Building Accumulated depreciation Accounts payable Notes Payable 300,000 3,750 84,000 16,750 a00 000 Common stnrk 9 of 11 Next> Drou
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:9.
BABA Corporation, a US Company, formed a subsidiary with a new company in France on January1 2020, by imesting
400,000 Euro in exchange for all of the subsidiary's common stock. On July 1, 2020, the subsidiary purchaed land for 100.000
Euro and a building for 300,000 Euro. The building is being depreciated over a 40-year life by the straigh-ne method The
inventory is valued at historical cost The Euro is the subsidiarys functional currency and its reporting cumency Exchange rates
for the Euro on various dates were:
January 1, 2020
July 1, 2020
December 31, 2020
0220 46
1 Euro = $1.51
1 Euro = $1.56
1 Euro = $1.53
1 Euro $1.52
2020average rate
The subsidiary's adjusted trial balance shows the following balances:
Cash
100,000
Accounts receivable
60,000
Inventory
80,000
Land
100,000
300,000
Building
Accumulated depreciation
Accounts payable
Notes Payable
3,750
84,000
16,750
400 000
Common etork
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Transcribed Image Text:Inventory
Land
9.
100,000
Building
Accumulated depreciation
300,000
3,750
Accounts payable
84,000
16,750
Notes Payable
Common stock
400,000
02.20 29
Retained earnings
Sales revenue
443,000
213,750
Cost of goods sold
Depreciation expense
Other expenses
3.750
90,000
Instruction:
1- Translated the previous balances (round to the nearest dollar)
2- Calculate the Cumulative Translation-Adjustment
Essay
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