1. Rose Co has fixed assets information as below. Jan 1, Year 1. Purchase 2,000 PPE with rate of $1 per Jan 1, Year 2. Purchase 2,400 PPE with rate of $1,2 per Both equipment have a five year useful life. Average exchange rate for year 2 is $1.1 per At Dec 31, Year 2, Exchange rate is $1.3 per Required: A, Determine assets value (asset costs) on Dec 31, year 2 in parent currency (S) B. Determine accumulated depreciation on Dec 31, year 2 in S Answer: -Current rate method Equipment 1 Cost Acc.depn Carrying amount Depn expense Translation rate S 2,000 CR 800 CR 1,400 CR 400 AR Equipment 2 Translation rate S Cost 2,400 Acc.depn 480 Carrying amount 1,920 Depn expense 480 Assets value on Dec 31, year 2 under current rate method. -> Acc depreciation on Dec 31, year 2 under current rate method: - Temporal method Equipment I Cost Acc.depn Carrying amount Depn expense Translation rate S 2,000 800 1,600 400 Equipment I Cost Translation rate S 2,000 Acc.depn 800 Carrying amount 1,600 -0400 Depn expense > Assets value on Dec 31, year 2 under temporal method: >> Acc. depreciation on Dec 31, year 2 under temporal method.