On January 1, 2018, Pass Company acquired Study PLC, a British subsidiary, by purchasing all its common
Question:
On January 1, 2018, Pass Company acquired Study PLC, a British subsidiary, by purchasing all its common stock at book value.
Building and equipment were acquired as follows:
Date | Cost |
January 1, 2016 | £100,000 |
December 31, 2017 | £130,000 |
July 1, 2018 | £100,000 |
Building and equipment are depreciated using straight-line method and a 10-year life, with no salvage value.
Exchange Rates Table | ||
January 1, 2016 | 1 £ | $1.20 |
December 31, 2017 | 1£ | $1.25 |
January 1, 2018 | 1£ | $1.25 |
July 1, 2018 | 1£ | $1.26 |
November 1, 2018 | 1£ | $1.27 |
December 26, 2018 | 1£ | $1.31 |
December 31, 2018 | 1£ | $1.35 |
Average for 2018 | 1£ | $1.30 |
Assume the U.S. dollar is the functional currency.
Using the appropriate restatement method, what is the amount of accumulated depreciation in dollars?
a. $60,000
b. $60,050
c. $76,300
d. $76,300
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas