A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1. 2015. for 100.000 pesos

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A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1. 2015. for 100.000 pesos each ft pays for both item on June 1.2025. and they e still on hand at year- end. Inventory is carried at cost under the lower-of-cost-or-market n.de. Currency exchange rates for 1 peso follow:
January 1. 2015.....................................$0.15 = 1 peso
April 1.2015.................................................0.16- 1
June 1. 2015.................................................0.17 = 1
Decembec 311 2015........................................0.19 = 1
Assume that the U.S. dollar is the subsidiary's functional currency. What balances does a consolidated balance sheet report as of December 31. 2015?
a Marketable equity securities = $16,000 and Inventory = $16.000
b. Marketable equity securities = $17,000 and Inventory = $17.000.
c. Marketable equity securities = $19000 and Inventory = $16,000.
d. Marketable equity securities = $19,000 and Inventory = $19000.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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