Campione Manufacturing acquired an 80% interest in DaLuca Distributors, a foreign corporation established on November 1, 2006,

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Campione Manufacturing acquired an 80% interest in DaLuca Distributors, a foreign corporation established on November 1, 2006, for 650,000 foreign currency units (FC). Campione acquired its 80% interest on June 30, 2008, when DaLuca€™s shareholders€™ equity consisted of capital stock, paid-in capital in excess of par, and retained earnings in the amounts of 100,000 FC, 210,000 FC, and 300,000 FC, respectively. The excess of cost over book value was allocated to goodwill and depreciable assets in the amounts of 120,000 FC and 42,000 FC, respectively. The goodwill is annually tested for impairment, and no impairment in the value has been suggested. The depreciable assets are to be depreciated over 10 years assuming the straight-line method. DaLuca€™s income and dividends over the period from July 1, 2008,through the end of 2010 were as follows:
Campione Manufacturing acquired an 80% interest in DaLuca Distributors, a

The above dividends were declared at year-end. DaLuca€™s condensed trial balance in FC as of December 31, 2011, is as follows:

Campione Manufacturing acquired an 80% interest in DaLuca Distributors, a

The current-year dividend was declared on November 30, 2011. The FC is DaLuca€™s functional currency, and selected exchange rates between the FC and the dollar are as follows:
1 FC =
November 1,2006.. .. . .. . . .. ... 1.80
June 30, 2008.. .... .. . . . . . .. ... 1.90
Last 6 months of2008average. . .. . 0.92
December 31, 2008. .. . .. . . .. ... 1.94
2009 Average.. .. .. ... . . .. .... . 2.05
December 31, 2011 ... .. . . . . .. . . . 1.93
December 31, 2009 . .. . . .. . . . . .. . $2.07
2010 Average. .. ... . . .. . . . . .. . . . 2.02
December 31, 2010 ... .. . . .. . . . . . 2.00
2011 Average... .. . . . . . .. . . . . .. . 1.95
November 30, 2011. . . . . .. . . . . .. . 1.94
Required
Prepare the translated trial balance for DaLuca and prepare all of the elimination and adjusting entries necessary to prepare consolidated financial statements. Assume that Campione uses the simple equity method.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  answer-question

Advanced Accounting

ISBN: 978-0538480284

11th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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