Lakey International is a foreign corporation that maintains its books of record in foreign currency (FC), although

Question:

Lakey International is a foreign corporation that maintains its books of record in foreign currency (FC), although its functional currency is the U.S. dollar. Lakey originally began operations on July 1, 2012, by issuing no par common stock in the amount of 200,000 FC. At the beginning of 2014, a U.S. corporation acquired an 80% interest in Lakey's shareholders' equity consisting of 200,000 FC of common stock and 50,000 FC of retained earnings. The U.S. corporation maintained its 80% interest in 2014, when additional stock in the amount of 140,000 FC was issued when the rate of exchange of 1 FC was equal to $1.68. Condensed income statements for Lakey expressed in FC are as follows

Lakey accounts for its inventory using the LFO method and goods available for sale consisted of the following for the years 2014 and 2015:

Lakey began operations with 300,000 FC of equipment and then added additional equipment as follows: 60,000 FC and 150,000 FC on September 30, 2014, and July 1, 2015, respectively. All equipment is depreciated using the straight-line method over a 15-year useful life. Although no dividends were paid in 2014, Lakey did pay a 20,000 FC dividend in the second quarter of 2015 when 1 FC equaled $1.72.
Determine the remeasured value of shareholders' equity, excluding the remeasurement gain or loss, for the years 2014 and 2015. Additional selected rates of exchange are as follows:

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...