On January 1, 2021, Palmer Company acquired all of the outstanding stock of Sireti Company, a Kenyan firm at a cost of $400,000. The net assets of Palmer on the date of acquistion was 7,000,000 Kenyan schilling (KES) and any differential is due to the fair value of equipment being different than the book value. Sireti is depreciating the equipment over a five-year period. Exchange rates for KES during 2021 were:

calculated amount 

PART A: Journalize all the equity method entries Palmer would record for its investment in Sireti Company during 2021 assuming the functional currency of Sireti is the US dollar PART B: Journalize all the equity method entries Palmer would record for its investment in Sireti Company during 2021 assuming the functional currency of Sireti is the Kenyan Shilling

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01/01/21 05/01/21 12/20/21 12/31/21 2021 Average $ 0.055 $0.063 (date of dividends) $ 0.047 (date of ending inventory purchase) $ 0.053 $0.057 01/01/21 05/01/21 12/20/21 12/31/21 2021 Average $ 0.055 $0.063 (date of dividends) $ 0.047 (date of ending inventory purchase) $ 0.053 $0.057

Answer rating: 100% (QA)

112021 Palmer Company acquires all of the outstanding stock of Siret... View the full answer