Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Re-measurement: It is process to measure the financial results of any other currency into functional currency. Dividend: Dividend is the return on investment . It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary. The amount dividend received by P company from S company.

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.12E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Recording the amortization of trademark in P company’s book.

e.

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Price and Efficiency Variances (22 points) The Livingston Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: 「 Direct Materials: 10 lb. at $5.20 per lb. Direct Manufacturing Labor: 0.5 hour at $30 per hour $52 $15.00 The number of finished unit budgeted for January 2017 was 9,940; 9,900 units were actually produced. Actual Results in January 2017 were as follows: 1.200 Direct Materials: 97,500 lb. used Direct Manufacturing Labor: 4,900 hours budg $155,575 During the month, materials purchases amounts to 99,400 lb., at a total cost of $536,760. Input price variances are isolated upon purchase. Input efficiency variances are isolated at the time of usage. Requirement Computer the January 2017 price and efficiency variances of direct materials and direct manufacturing labor. (Put a U for Unfavorable and a F for Favorable variances) 53670 Actual Costs Incurred Costs (Actual Input Qty. Actual Input…

Maple Grove Trading presents the following financial information Description Operating Expenses Amount 60,000 Sales Returns and Allowances 7,000 Sales Discounts Sales Revenue Cost of Goods Sold 10,000 200,000 95,000 What is Maple Grove Trading's gross profit? a. $98,000 b. $85,000 c. $88,000 d. $75,000

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.12E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Recording the amortization of trademark in P company’s book.

e.

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.12E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Recording the amortization of trademark in P company’s book.

e.

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 12.12E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Recording the amortization of trademark in P company’s book.

e.

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

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Answer 5

Chapter 12, Problem 12.12E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

(c)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

(d)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Recording the amortization of trademark in P company’s book.

e.

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

Answer 6

Chapter 12, Problem 12.12E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

Answer 7

Chapter 12, Problem 12.12E

(a)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The amount dividend received by P company from S company.

Answer 8

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

Answer 9

(b)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Dividend: Dividend is the return on investment. It is a part of profit of the company in which investment is made. When subsidiary pays the dividend then parent company reduces the amount of investment by the dividend amount to be received from its investment in subsidiary.

The journal entries to record P company’s equity in the net income of S company and parent’s share of translation adjustment.

Answer 10

(c)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

Answer 11

(c)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Calculation for the differential reported on consolidated balance sheet of December 31, 20X8 and the translation adjustment from it.

Answer 12

(d)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Recording the amortization of trademark in P company’s book.

Answer 13

(d)

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

Recording the amortization of trademark in P company’s book.

Answer 14

e.

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

Answer 15

e.

To determine

Introduction: Translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

Re-measurement: It is process to measure the financial results of any other currency into functional currency.

The amount of translation adjustment reported on the statement of comprehensive income as element of other comprehensive income.

Answer 16

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Answer 18

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Answer 19

Ch. 12 - Prob. 12.1Q Ch. 12 - Prob. 12.2Q Ch. 12 - Prob. 12.3Q Ch. 12 - How widely used are IFRS? Can IFRS be used for...Ch. 12 - Prob. 12.5Q Ch. 12 - Prob. 12.6Q Ch. 12 - Prob. 12.7Q Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Solution Summary: The author explains translation is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

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