A U.S. parent acquired a U.K. subsidiary on January 1, 2019. The subsidiary's functional currency is...

 

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A U.S. parent acquired a U.K. subsidiary on January 1, 2019. The subsidiary's functional currency is the pound, and its December 31, 2019 trial balance is as follows: Cash, receivables Inventories, at cost Plant & equipment, net Liabilities Capital stock Retained earnings, a. b. beginning Revenues Expenses Dividends Required January 1 £ Exchange rates ($/£) are: January 1, 2019. Average for 2019. Rate when dividends paid.. December 31, 2019.. Dr (Cr) £210,000 300,000 1,030,000 (880,000) (180,000) (480,000) December 31 £ Dr (Cr) £ 180,000 330,000 1,050,000 (720,000) (180,000) (480,000) (3,000,000) 2,700,000 120,000 £ $1.36 1.34 1.31 1.30 0 Calculate the translation gain or loss for 2019. Translate the subsidiary's December 31, 2019 trial balance. A U.S. parent acquired a U.K. subsidiary on January 1, 2019. The subsidiary's functional currency is the pound, and its December 31, 2019 trial balance is as follows: Cash, receivables Inventories, at cost Plant & equipment, net Liabilities Capital stock Retained earnings, a. b. beginning Revenues Expenses Dividends Required January 1 £ Exchange rates ($/£) are: January 1, 2019. Average for 2019. Rate when dividends paid.. December 31, 2019.. Dr (Cr) £210,000 300,000 1,030,000 (880,000) (180,000) (480,000) December 31 £ Dr (Cr) £ 180,000 330,000 1,050,000 (720,000) (180,000) (480,000) (3,000,000) 2,700,000 120,000 £ $1.36 1.34 1.31 1.30 0 Calculate the translation gain or loss for 2019. Translate the subsidiary's December 31, 2019 trial balance.

Answer rating: 100% (QA)

Answer calculation of Translation Gain loss Gain 1085 an Revenue A Translation a Revenue b ex... View the full answer