Medeiros Inc., a Portugese firm was acquired by a U.S. company on January 1, 2019. Selected account balances are available for the year ended December 31, 2021, and are stated in euro, the local currency. Sales EURO 500,000 

Inventory at cost (bought on February 1, 2021) 40,000 

Equipment (bought on January 1, 2019) 100,000 

Dividends (paid on September 1, 2021) 30,000 

Accumulated Depreciation – Equipment (balance at 12/31/21) 55,000 

Depreciation Expense on Equipment (for the year ended 12/31/21) 10,000 

Relevant exchange rates for 1 euro are given below: 

January 1, 2019 $ 0.91 

January 1, 2020 $ 0.92 

January 1, 2021 $ 0.93 

February 1, 2021 $ 0.94 

September 1, 2021 $ 0.97 

December 31, 2021 $ 1.01

 Average for year, 2021 $ 0.95 

1) Assume the functional currency is the euro, compute the U.S. income statement amount for sales for 2021. 

2) Assume the functional currency is the euro, compute the U.S. balance sheet amount for inventory, at cost, at December 31, 2021. 

3) Assume the functional currency is the euro, compute the U.S. balance sheet amount for equipment for 2021. 

4)Assume the functional currency is the euro, compute the U.S. statement of retained earnings amount for dividends for 2021. 

5)Assume the functional currency is the euro, compute the U.S. balance sheet amount for accumulated depreciation for 2021. 

6)Assume the functional currency is the euro, compute the U.S. income statement amount for depreciation expense for 2021. 

7)Assume the functional currency is the U.S. dollar, compute the U.S. income statement amount for sales for 2021. 

8)Assume the functional currency is the U.S. dollar, compute the U.S. balance sheet amount for inventory, at cost, for 2021. 

9)Assume the functional currency is the U.S. dollar, compute the U.S. balance sheet amount for equipment for 2021. 

10) Assume the functional currency is the U.S. dollar, compute the U.S. statement of retained earnings amount for dividends for 2021. 

11)Assume the functional currency is the U.S. dollar, compute the U.S. balance sheet amount for accumulated depreciation for 2021. 

12) Assume the functional currency is the U.S. dollar, compute the U.S. income statement amount for depreciation expense for 2021.

Answer rating: 100% (QA)

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