Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three
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April 1, 2016 . . . . . . . . . . . . . . . . . . . . . $0.33 = 1 dinar
January 1, 2017 . . . . . . . . . . . . . . . . . . 0.36 = 1
May 1, 2017 . . . . . . . . . . . . . . . . . . . . . 0.37 = 1
June 1, 2017 . . . . . . . . . . . . . . . . . . . . 0.39 = 1
December 31, 2017 . . . . . . . . . . . . . . 0.41 = 1
a. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the dinar is the subsidiary's functional currency. What is the translation adjustment for this subsidiary for the year 2017?
b. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the U.S. dollar is the subsidiary's functional currency. What is the remeasurement gain or loss for 2017?
c. Assume that Zugar is a foreign subsidiary of a U.S. multinational company. On the December 31, 2017, balance sheet, what is the translated value of the Land account? On the December 31, 2017, balance sheet, what is the remeasured value of the Land account?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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