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ACC - The Alpine Company

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Question;The Alpine Company is a Swiss subsidiary of an American company and its accounts are included in the U.S dollar consolidated statements of the parent company. At the year-end, the following balances were included in the foreign currency balance sheet of the Alpine Company. All amounts are expressed in Swiss Francs which are designated SF hereafter.DR. CR.Cash SF 400,000 Long-term receivables 500,000 Inventories 1,200,000 Plant and equipment 4,000,000 Accounts payable SF 300,000Long-term Liabilities 1,500,000Accumulated Depreciation 850,000The long-term receivables and Plant and equipment were acquired several years ago when SF 1 = $0.80. The Long-term liabilities were also issued at this time. The inventories were acquired for SF 1,550,000 when SF 1 = $0.90. However, they are carried at their net realizable value as measured at the year-end. The exchange rate at the year-end date is SF 1 = $0.95.Required:Translate the account balances for inclusion in the year-end consolidated balance sheet under the following general methods of translation.A. Temporal MethodB. Current Rate Method

 

Paper#41004 | Written in 18-Jul-2015

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