Pin Corporation, a U.S. company, formed a British subsidiary on January 1, 2023 by investing 450.000...
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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, 2026, 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 = $1.56 November 1, 2023 2023 average rate December 31, 2023 1=$1.60 Based on the above information, convert the Cost of Goods Sold account balance of 150,000 on December 31, 2023 to US dollar using the appropriate restatement method. Note: The US Dollar is Skin's functional currency. (When writing your answer, do not use commas () or the dollar sign ($). For example, if your answer is $100,000 write it as 100000). 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, 2026, 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 = $1.56 November 1, 2023 2023 average rate December 31, 2023 1=$1.60 Based on the above information, convert the Cost of Goods Sold account balance of 150,000 on December 31, 2023 to US dollar using the appropriate restatement method. Note: The US Dollar is Skin's functional currency. (When writing your answer, do not use commas () or the dollar sign ($). For example, if your answer is $100,000 write it as 100000).
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Answer rating: 100% (QA)
Restatement of Cost of Goods Sold to USD Since the US dollar is Skin Corporations functional currency we need to remeasure the cost of goods sold in p... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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