Question

Plaxton Inc. is a company located in Canada and uses the Canadian dollar as the functional currency. Plaxton began operations January 1, 2012. Its shareholders are American and would like the statement to be presented in U.S. dollars. The following is an excerpt from Plaxton’s financial statements for 2012 and 2013. The changes in Other Comprehensive Income occur evenly over the year. Dividends were declared at year end. There was no other comprehensive income at the day of acquisition.
The following exchange rates exist for the U.S. dollar relative to the Canadian dollar:
Date ......... U.S. $1 = × C$
January 1, 2012 .... 1.02
December 31, 2012 .... 1.11
Average 2012 ...... 1.01
December 31, 2013 .. 1.21
Average 2013 ...... 1.004
Required
Translate the Plaxton financial statements as at December 31, 2013 from its functional currency to its presentation currency.


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  • CreatedJune 09, 2015
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