A wholly owned subsidiary of a U.S. parent company has certain accounts for the year ended...
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A wholly owned subsidiary of a U.S. parent company has certain accounts for the year ended December 31, 2020, stated in local currency units (Euro) as follows: Land, purchased March 1, 2017 Equipment, purchased February 1, 2018 Depreciation expense on equipment Bad debt expense Utilities expense Euro 1,000,000 4,000,000 375,000 250,000 625,000 The exchange rates at various dates are as follows: U.S. Dollar equivalent Euro $.053 March 1, 2017 February 1, 2018 December 31, 2020 Average for year ended December 31, 2020 0.40 0.50 0.55 Assume that the U.S. dollar is the subsidiary's functional currency and that the charges to the expense accounts occurred approximately evenly during the year. What total dollar amount should be included in the translated income statement to reflect expenses? Answer: 687500 A wholly owned subsidiary of a U.S. parent company has certain accounts for the year ended December 31, 2020, stated in local currency units (Euro) as follows: Land, purchased March 1, 2017 Equipment, purchased February 1, 2018 Depreciation expense on equipment Bad debt expense Utilities expense Euro 1,000,000 4,000,000 375,000 250,000 625,000 The exchange rates at various dates are as follows: U.S. Dollar equivalent Euro $.053 March 1, 2017 February 1, 2018 December 31, 2020 Average for year ended December 31, 2020 0.40 0.50 0.55 Assume that the U.S. dollar is the subsidiary's functional currency and that the charges to the expense accounts occurred approximately evenly during the year. What total dollar amount should be included in the translated income statement to reflect expenses? Answer: 687500
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 9781119403999
5th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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