Question

For this problem, refer to the information provided in Problem 13-9 for P Company and SFr Company. Ignore deferred income taxes in the allocation of the difference between implied and book value.

Required:
A. If you have not already done so, prepare a workpaper to translate the trial balance of the subsidiary into dollars using the current rate method.
B. Prepare the journal entries made on the books of P Company during 2009 to account for its investment in SFr Company. P Company uses the complete equity method to record its investment in SFr Company. At the date of acquisition, the 760,000 franc difference between implied and book value interest acquired was allocated as follows:


The building is depreciated over a 10-year remaining life using the straight-line method of amortization.
C. Prepare a consolidated statements workpaper at December 31,2009.


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  • CreatedMarch 13, 2015
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