Quadros Incorporated, a Portuguese firm was acquired by a U.S. company on January 1, 2023. Selected account
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Question:
Quadros Incorporated, a Portuguese firm was acquired by a U.S. company on January 1, 2023. Selected account balances are available for the year ended December 31, 2024, and are stated in Euro, the local currency.
| Sales | 400,000 |
|---|---|
| Inventory (bought on February 1, 2024) | 20,000 |
| Equipment (bought on January 1, 2023) | 90,000 |
| Dividends (paid on September 1, 2024) | 20,000 |
| Accumulated depreciationEquipment 12/31/24 | 45,000 |
| Depreciation expenseEquipment, 2024 | 9,000 |
Relevant exchange rates for 1 Euro are given below:
| January 1, 2023 | $ 0.91 |
|---|---|
| January 1, 2024 | 0.93 |
| February 1, 2024 | 0.94 |
| September 1, 2024 | 0.97 |
| December 31, 2024 | 1.01 |
| 4th quarter average, 2023 | 0.90 |
| 4th quarter average, 2024 | 0.98 |
| Average, 2024 | 0.95 |
Assume the functional currency is the U.S. Dollar; compute the U.S. income statement amount for depreciation expense for 2024.
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