Pin Corporation, a U.S. company, formed a British subsidiary on January 1, 2023 by investing 450,000 British
Question:
Pin Corporation, a U.S. company, formed a British subsidiary on January 1, 2023 by investing 450,000 British pounds (£) in exchange for all of the subsidiary's common stock. The British subsidiary, Skin Corporation, purchased a real estate on April 1, 2023 at a cost of £500,000, with £100,000 allocated to land and £400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. Skin has beginning inventory of £60,000 and ending inventory of £80,000. Purchases during the year amounted to £170,000. Ending inventory was acquired on September 20, 2023, and the FIFO inventory method is used. On November 1, 2023, Skin declared and paid dividends of £20,000. Exchange rates for the pound on various dates were: Date Exchange Rate January 1, 2023 1£ =$1.50 April 1, 2023 1£ = $1.54 September 20, 2023 1£ = $1.56 November 1, 2023 1£ = $1.52 2023 average rate 1£ = $1.55 December 31, 2023 1£=$1.60 Based on the above information, convert the Depreciation Expense account balance on December 31, 2023 to US dollar using the appropriate restatement method. Note: The US Dollar is Skin's functional currency.
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith