Question: Refer to Exercise 13-4. Using the same information, assume that the Brazilian real is identified as the functional currency of the subsidiary. Required: A. Remeasure

Refer to Exercise 13-4. Using the same information, assume that the Brazilian real is identified as the functional currency of the subsidiary.

Required:
A. Remeasure the account balances that are expressed in Swiss francs into Brazilian reals, Direct exchange rates for the real are:
Real per Franc
Beginning of current year.......... 1.3940
End of current year .......... 1.2899
Average for current year.......... 1.3445
Dividend payment date.......... 1.2438
B. Translate the remeasured accounts that are now stated in Reals into dollars using the current rate method. Direct exchange rates for the real are:
Dollars per Real
Beginning of current year....... $.4891
End of current year.......... .4630
Average for current year....... .4751
Dividend payment date....... .4740

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