U.S. Multinational Corporation's subsidiary in Bangkok has on its books fixed assets valued at 295000 baht. One-third of assets were acquired two year ago when the exchange rate was THB 31=$1. The other fixed assets were acquired last year when the exchange rate was THB 35= $1. Each layer of fixed assets is being deprecated straight-line with an estimated useful life of 20 year. Relevant exchange rates for the current year are Year-end rate THB 38=$1 Average rate THB 36=$1 Calculate the Thai subsidiary's depreciation for the current year, assuming the U.S. dollars is the functional currency.

U.S. Multinational Corporation's subsidiary in Bangkok has on its books fixed assets valued at 295000 baht. One-third of assets were acquired two year ago when the exchange rate was THB 31=$1. The other fixed assets were acquired last year when the exchange rate was THB 35= $1. Each layer of fixed assets is being deprecated straight-line with an estimated useful life of 20 year. Relevant exchange rates for the current year are Year-end rate THB 38=$1 Average rate THB 36=$1 Calculate the Thai subsidiary's depreciation for the current year, assuming the U.S. dollars is the functional currency.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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