Leo Corporation acquired 100 percent of the common stock of a British company on January 1, 2019, for $137800. Leodetermined that the Great Britain Pound was the functional currency. On December 31, 2019, the British subsidiary'sadjusted trial balance, translated into U.S. dollars, contained $19500 more debits than credits. The British subsidiaryreported income of 93400 pounds for 2019 and paid a cash dividend of 32500 pounds on October 25, 2019. Leo usesthe fully adjusted equity method of accounting for its investment. Exchange rates at various dates during 2019 follow:January 11£ =1.21October 251£ =1.24December 311£ =1.27Average for the year1f =1.23Based on the preceding information, the receipt of the dividend will result in a credit to the investment account in theamount of:BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF$1,000.Your Answer:

Based on preceeding information, the receipt of the dividend will result in a credit to the…

trial balance, translated into U.S. dollars, contained $1 d income of 93400 pounds for 2019 and paid a cash div adjusted equity method of accounting for its investme January 1 1f = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 e for the year 1£ = 1.23

trial balance, translated into U.S. dollars, contained $1 d income of 93400 pounds for 2019 and paid a cash div adjusted equity method of accounting for its investme January 1 1f = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 e for the year 1£ = 1.23

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transactions

Section: Chapter Questions

Problem 25P

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