A wholly owned subsidiary of Ward Inc. has certain expense accounts for the year ended December 31,
Question:
LCU
Depreciation of equipment (related assets
were purchased January 1, 2012) .... 120,000
Provision for doubtful accounts ...... 80,000
Rent ............... 200,000
The exchange rates at various dates are as follows:
Dollar Equivalent of LCU
12/31/14 ............ $0.40
Average for year ended 12/31/14 . 0.44
1/1/12 ............ 0.50
Assume that the LCU is the subsidiary’s functional currency and that the charges to the expense accounts occurred approximately evenly during the year.
Required:
What total dollar amount should be included in Ward’s 2014 consolidated income statement to reflect these expenses?
Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Question Posted: