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Question;33. Seattle, Inc. owns an 80 percent interest in a;Portuguese subsidiary. For 2008, Seattle reported income from operations of;$2.0 million. The Portuguese company's income from operations, after foreign;currency translation, was $1.1 million. The foreign currency translation;adjustment was $120,000 (credit). Consolidated net income and consolidated;comprehensive income for the year are;A. Option A;B. Option B;C. Option C;D. Option D;34. Refer to the above information. Assuming the local;currency of the country in which Perth Company is located is the functional;currency, what are the translated amounts for the items below in U.S. dollars?;A. Option A;B. Option B;C. Option C;D. Option D;35. Refer to the above information. Assuming Perth's;local currency is the functional currency, what is the amount of translation;adjustments that result from translating Perth's trial balance into U.S.;dollars at December 31, 2008?;A. $396,500 debit;B. $285,000 credit;C. $405,000 credit;D. $411,000 credit;36. Refer to the above information. Assuming Perth's;local currency is the functional currency, what is the amount of patent;amortization for 2008 that results from Johnson's acquisition of Perth's stock;on January 2, 2008. Round your answer to the nearest dollar.;A. $11,500;B. $11,884;C. $7,667;D. $9,394;37. Refer to the above information. Assuming Perth's;local currency is the functional currency, what is the amount of translation;adjustment that appears on Johnson's consolidated financial statements at;December 31, 2008?;A. $419,184 credit;B. $416,884 credit;C. $405,884 debit;D. $398,500 credit;38. Refer to the above information. Assuming Perth's;local currency is the functional currency, what is the balance in Johnson's;investment in foreign subsidiary account at December 31, 2008, assuming use of;the equity method?;A. $3,216,500;B. $3,560,000;C. $3,568,300;D. $3,577,694;39. Refer to the above information. Assuming the U.S.;dollar is the functional currency, what is Johnson's remeasurement gain (loss);for 2008? (Assume the ending inventory was acquired on December 31;2008.);A. $31,000 gain;B. $36,500 loss;C. $22,000 gain;D. $32,000 gain;40. Refer to the above information. Assuming the U.S.;dollar is the functional currency, what is the amount of Perth's cost of goods;sold remeasured in U.S. dollars?;A. $811,500;B. $843,500;C. $884,500;D. $799,500;41. Refer to the above information. Assuming the U.S.;dollar is the functional currency, what is the amount of patent amortization;for 2008 that results from Johnson's acquisition of Perth's stock on January 2;2008?;A. $11,884;B. $11,770;C. $12,550;D. $11,500;42. Refer to the above information. Assuming the U.S.;dollar is the functional currency, what is Perth's net income for 2008 in U.S.;dollars (include the remeasurement gain or loss in Perth's net income)?;A. $238,000;B. $228,000;C. $219,500;D. $202,000;43. Refer to the above information. Assuming the U.S.;dollar is the functional currency, what is the balance in Johnson's investment;in foreign subsidiary account at December 31, 2008 (assuming the use of the;equity method)?;A. $3,303,400;B. $3,294,500;C. $3,323,400;D. $3,314,500;44. Based on the preceding information, in the journal;entry to record the receipt of dividend from Steamship;A. Investment in Steamship Company will be credited for $3,450.;B. Cash will be debited for $3,300.;C. Investment in Steamship Company will be credited for $4,000.;D. Cash will be debited for $3,600.;45. Based on the preceding information, in the journal;entry to record parent's share of subsidiary's translation adjustment;A. Other Comprehensive Income ? Translation Adjustment will be debited for;$8,000.;B. Other Comprehensive Income ? Translation Adjustment will be credited;for $6,000.;C. Investment in Steamship Company will be credited for $6,000.;D. Investment in Steamship Company will be debited for $8,000.;46. Based on the preceding information, what amount of;translation adjustment is required for increase in differential?;A. $3,000;B. $5,500;C. $4,500;D. $5,000;47. Based on the preceding information, in the journal;entry to record the amortization of the patent for 2008 on the parent's books;Investment in Steamship Company will be debited for;A. $5,000;B. $5,500;C. $4,500;D. $3,000;48. Based on the preceding information, at what dollar;amount is the ending inventory shown in the trial balance of the consolidated;workpaper?;A. $45,000;B. $50,000;C. $40,000;D. $35,000;49. Based on the preceding information, what amount of;unrealized intercompany gross profit is eliminated in preparing the;consolidated financial statements for the year?;A. $0;B. $5,000;C. $10,000;D. $15,000;50. Based on the preceding information, at what amount;is the inventory shown on the consolidated balance sheet for the year?;A. $45,000;B. $30,000;C. $40,000;D. $35,000

 

Paper#44963 | Written in 18-Jul-2015

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