Question 10

Emu Co Ltd purchased a foreign operation based in Singapore on 1 July 2012. The following information was extracted from the foreign operation's accounts for the period ended 30 June 2014:

Exchange rate information is:

What is the amount at which each item will be translated (rounded to the nearest A$)?

1.

2.

3.

4.

\begin{tabular}{|l|r|} \hline & \multicolumn{2}{|c|}{ \$S } \\ \hline Equipment (purchased 1 July 2012, revalued 1 June 2014) & 650000 \\ \hline Debentures (issued 1 June 2014) & 900000 \\ \hline Inventory on hand (purchased last quarter 2015) & 68000 \\ \hline Depreciation expense-equipment & 54000 \\ \hline Share capital at acquisition of foreign subsidiary & 4000000 \\ \hline Sales revenue (earned evenly over the period) & 850000 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 1 July 2012 & \$S1.00 = AS1.0520 \\ \hline Average for year ended 30 June 2014 & $S1.00=A$1.0700 \\ \hline 1 June 2014 & $S1.00=A$1.0735 \\ \hline Last quarter 2014 & \$S1.00 = A $1.0600 \\ \hline 30 June 2014 & \$S1.00 = AS1.0690 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline & \multicolumn{1}{|c|}{ AS } \\ \hline Equipment & 697775 \\ \hline Debentures & 962100 \\ \hline Inventory on hand & 72080 \\ \hline Depreciation expense-equipment & 57969 \\ \hline Share capital at acquisition of foreign subsidiary & 4208000 \\ \hline Sales revenue & 909500 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline & \multicolumn{1}{|c|}{ AS } \\ \hline Equipment & 694850 \\ \hline Debentures & 962100 \\ \hline Inventory on hand & 72692 \\ \hline Depreciation expense-equipment & 57780 \\ \hline Share capital at acquisition of foreign subsidiary & 4208000 \\ \hline Sales revenue & 909500 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline & \multicolumn{1}{|c|}{ AS } \\ \hline Equipment & 683800 \\ \hline Debentures & 966150 \\ \hline Inventory on hand & 72080 \\ \hline Depreciation expense-equipment & 56808 \\ \hline Share capital at acquisition of foreign subsidiary & 4276000 \\ \hline Sales revenue & 908650 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline & \multicolumn{1}{|c|}{ AS } \\ \hline Equipment & 695500 \\ \hline Debentures & 963000 \\ \hline Inventory on hand & 72760 \\ \hline Depreciation expense-equipment & 57780 \\ \hline Share capital at acquisition of foreign subsidiary & 4294000 \\ \hline Sales revenue & 908650 \\ \hline \end{tabular}