DUMMY Inc. is a corporation engaged in importation of raw materials and exportation of products to/from United States of America. The following importing and exporting transactions occurred for the year ended December 31, 2015: > On January 1, 2015, DUMMY Inc. imported on account a machinery from a USA supplier at a cost of $10,000 payable on February 1, 2016. As of the date of importation, the exchange price is P1 = $0.02. The machinery has a useful life of 5 years. > On July 1, 2015, DUMMY Inc. imported on account 1,000 units of inventory from a USA supplier at a cost of $20 per unit payable on March 1, 2016. As of the date of importation, the exchange price is P1 = $0..025. > On September 1, 2015, DUMMY Inc. imported on account 2,000 units of inventory from a USA supplier at a cost of $P20 per unit payable on April 1, 2016. As of the date of importation, the exchange price is P1=$0.04. > On October 1, 2015, DUMMY Inc. exported on account 2,500 units of inventory to a USA supplier at selling price of $30 per unit payable on May 1, 2016. As of the date of exportation, the exchange price is P1=$0.0125. > It is the policy of DUMMY Inc. to apply FIFO method for its inventory. The following exchange rates are determined from the BSP Bulletin: 12/31/2015 - $1=P60 2/1/2016 - $1=P52 3/1/2016- $1=P44 4/1/2016- $1=P20 5/1/2016 - $1=78 Required: Determine the following: __________

1. Net Forex Gain/(Loss) for the year ended December 31, 2015 __________

2. Net Forex Gain/(Loss) for the year ended December 31, 2016 __________

3. Book value of Accounts Payable on December 31, 2015 _ _________

4. Book value of Accounts Receivable on December 31, 2015 __________

5. Book value of machinery on December 31, 2015 __________

6. Book value of inventory on December 31, 2015 __________

7. Net income/(loss) for the year ended December 31, 2015 2. TAX Inc. is a corporation engaged in the business of acquiring investments in stocks from USA. The following transactions occurred for the year ended December 31, 2015:  > On January 1, 2015, TAX acquired 1,000 ordinary shares of an unlisted company for $20 per share by issuing 1.5-year 10% interest bearing note payable on July 1, 2016. The exchange rate on January 1, 2015 is $1=P40. > On July 1, 2015, TAX sold an equipment with a cost of P1,000,000 and accumulated depreciation of P800,000 in exchange for 1.25year 20% interest bearing note $10,000 receivable on October 1, 2016. The exchange rate on July 1, 2015 is $1=P30. The following exchange rates are determined from the BSP Bulletin: 1 2/31/2015 - $1=60 7/1/2016 - $1=P58 1 0/1/2016 - P57 __________

Answer rating: 100% (QA)

1 Net forex Loss for 2015 3400000 2 Net forex gain for 2016 3350000 3 Book value of Accounts ... View the full answer