On December 31, 2016, Hilman Enterprises of Montreal paid $12,000,000 for 100% of the outstanding shares of
Question:
On December 31, 2016, Hilman Enterprises of Montreal paid $12,000,000 for 100% of the outstanding shares of Wilsen Corp of the United States. Wilsen's fair values approximated its book values on that date.
Wilsen's comparative balance sheets for 2016 and 2017 are shown below:
Balance Sheet as at
December 31 (in U.S. Dollars)
Income Statement for
the Year ended
December 31, 2017
Other Information:
Exchange Rates:
|
Wilsen paid US$100,000 in dividends on September 30, 2017.The inventories on hand at the end of 2017 were purchased when the exchange rate was US$1 = CDN$1.195.
51.
Compute Wilsen's exchange gain or loss for 2017 if Wilson is considered to be an integrated subsidiary (i.e., the functional currency of the foreign operation is the same as the parent).
52.
Translate Wilsen's 2014 Income Statement if Wilsen is considered to be an integrated subsidiary (i.e., the functional currency of the foreign operation is the same as the parent).
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina