Owen Co. Owns a subsidiary in a foreign country whose trial balance in foreign currency unit (FCU) for the last two years follow: December 31,2018 December 31,2019 (in FCU) (in FCU) DEBITS Cash 100,000 80,000 Receivables 450,000 550,000 Inventory 680,000 720,000 Property and equipment (net) 1,000,000 900,000 Cost of goods sold 300,000 270,000 Operating Expenses 25,000 50,000 Miscellaneous Expenses 5,000 25,000 Dividends - 5,000 TOTAL 2,560,000 2,600,000 CREDITS Short-term debts 260,000 340,000 Long-term debts 1,250,000 1,100,000 Common stock 500,000 500,000 Retained earnings, 1/1 - 220,000 Sales 500,000 400,000 Interest income 50,000 40,000 TOTAL 2,560,000 2,600,000 Owen formed the subsidiary on January 1, 2018 when the exchange rated was P30 for 1FCU. The exchange rate for 1FCU on December 31, 2018 had increased to P35 and to P40 on December 31, 2019. Average rate during 2019 is P36. Income is earned evenly over the year. The subsidiary declared and paid dividends on September 1, 2019. The exchange rate on this date was P38 for 1FCU. The subsidiary’s functional currency is the foreign currency unit (FCU).The foreign country is a non-hyperinflationary economy. How much is the total assets of the subsidiary as of December 31, 2018 translated in Philippine Peso? Group of answer choices 75,300,000 72,475,000 69,650,000 78,050,000
Owen Co. Owns a subsidiary in a foreign country whose
December 31,2018
December 31,2019
(in FCU)
(in FCU)
DEBITS
Cash
100,000
80,000
Receivables
450,000
550,000
Inventory
680,000
720,000
Property and equipment (net)
1,000,000
900,000
Cost of goods sold
300,000
270,000
Operating Expenses
25,000
50,000
Miscellaneous Expenses
5,000
25,000
Dividends
-
5,000
TOTAL
2,560,000
2,600,000
CREDITS
Short-term debts
260,000
340,000
Long-term debts
1,250,000
1,100,000
Common stock
500,000
500,000
-
220,000
Sales
500,000
400,000
Interest income
50,000
40,000
TOTAL
2,560,000
2,600,000
Owen formed the subsidiary on January 1, 2018 when the exchange rated was P30 for 1FCU. The exchange rate for 1FCU on December 31, 2018 had increased to P35 and to P40 on December 31, 2019. Average rate during 2019 is P36. Income is earned evenly over the year. The subsidiary declared and paid dividends on September 1, 2019. The exchange rate on this date was P38 for 1FCU. The subsidiary’s functional currency is the foreign currency unit (FCU).The foreign country is a non-hyperinflationary economy.
How much is the total assets of the subsidiary as of December 31, 2018 translated in Philippine Peso?
Group of answer choices
75,300,000
72,475,000
69,650,000
78,050,000
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