Question: On January 1 2008 Trenten Systems a U S based company purchased

On January 1, 2008, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2008 financial statements stated in Swiss francs are given below.


Direct exchange rates for Swiss franc are:
Dollars per Franc
January 1, 2008.......... $.5987
December 31, 2008....... .5321
Average for 2008....... .5654
Dividend declaration and payment date.. .5810

Required:
A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation.
B. Prepare a schedule to verify the translationadjustment.
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  • CreatedMarch 13, 2015
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