subject
Business, 27.04.2021 15:10 vandarughb2875

Rolfe Company (a U. S.-based company) has a subsidiary in Nigeria, where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]): Cash NGN 16,000 Notes payable NGN 20,000
Inventory 10,000 Common stock 20,000
Land 4,000 Retained earnings 10,000
Building 40,000 Accumulated
depreciation (20,000)
NGN 50,000 NGN 50,000
The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place:
2020
Feb. 1 Paid 8,000,000 NGN on the note payable.
May 1 Sold entire inventory for 16,000,000 NGN on account.
June 1 Sold land for 6,000,000 NGN cash.
Aug. 1 Collected all accounts receivable.
Sept. 1 Signed long-term note to receive 8,000,000 NGN cash.
Oct. 1 Bought inventory for 20,000,000 NGN cash.
Nov. 1 Bought land for 3,000,000 NGN on account.
Dec. 1 Declared and paid 3,000,000 NGN cash dividend to parent.
Dec. 31 Recorded depreciation for the entire year of 2.
The U. S dollar ($) exchange rates for 1 NGN are as follows:
2008 NGN 1 = $0.0048
2010 1 = 0.0042
August 1, 2016 1 = 0.0062
December 31, 2016 1 = 0.0064
February 1, 2017 1 = 0.0066
May 1, 2017 1 = 0.0068
June 1, 2017 1 = 0.0070
August 1, 2017 1 = 0.0074
September 1, 2017 1 = 0.0076
October 1, 2017 1 = 0.0078
November 1, 2017 1 = 0.0080
December 1, 2017 1 = 0.0082
December 31, 2017 1 = 0.0084
Average for 2017 1 = 0.0074
1. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
2. Assuming the U. S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 12:50, Kiki18love
Suzanna decided not to pay federal income tax, saying that paying federal income tax is optional. describe two possible consequences of suzanna’s decision
Answers: 2
image
Business, 22.06.2019 05:20, alexandroperez13
Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?
Answers: 2
image
Business, 22.06.2019 12:40, abilovessoftball
Which of the following tasks would be a line cook's main responsibility? oa. frying french fries ob. chopping onions oc. taking inventory of stocked dry goods od. paying invoices
Answers: 2
image
Business, 22.06.2019 16:20, AnhQNguyen6764
The following information relates to the pina company. date ending inventory price (end-of-year prices) index december 31, 2013 $73,700 100 december 31, 2014 100,092 114 december 31, 2015 107,856 126 december 31, 2016 123,009 131 december 31, 2017 113,288 136 use the dollar-value lifo method to compute the ending inventory for pina company for 2013 through 2017.
Answers: 1
You know the right answer?
Rolfe Company (a U. S.-based company) has a subsidiary in Nigeria, where the local currency unit is...

Questions in other subjects: