On January 1, 2020 BBB Inc., a Canadian company with no capital assets of its own, acquired 100% of the outstanding shares of AAA. the fiscal year end for both companies is December 31. At the time of acquisition, AAA had a capital asset with a value of EURO$255,000 (book value equaled fair value). This asset was being amortized over 12 years on a straight-line basis, with no significant residual value expected. 

Answer the two question below: 

If AAA is considered to be a self-sustaining foreign subsidiary, what would be the amount shown for capital assets (net) when translated into Canadian Dollars as at December 31, 2020?

Use the exchange rates below: 

January 1, 2020 CDN$1.00 = EURO $0.778 December 31, 2020 CDN$1.00 = EURO $0.814

Answer rating: 100% (QA)

Given that the historical cost equals the fair value at acquisition and theres no significant res... View the full answer