Essay
Parent Company acquired a subsidiary in Germany in 2009.The subsidiary's balance sheet is stated in euros.When Parent Company acquired the subsidiary in 2009,a euro was worth $1.35.When the subsidiary earned its income during 2009-2014,the average exchange rate was $1.32.On December 31,2014,a euro is worth $1.20.
At December 31,2014,the subsidiary's assets were 1,000,000 euros; the liabilities were 500,000 euros,common stock was 400,000 euros and retained earnings was 100,000 euros.
Required:
Translate the subsidiary's balance sheet into dollars.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: A company that owns less than 20%
Q23: On January 1,2015,Barry Corporation paid $800,000 for
Q27: All of the following are necessary to
Q28: When an investor owns 35% of the
Q29: On January 1,2015,Brooklyn Company purchases $100,000,6% bonds
Q31: If the market interest rate is greater
Q75: The Unrealized Gain on Investment in Available-for-Sale
Q87: Other comprehensive income:<br>A)is a separate section of
Q114: On the purchase date, long-term available-for-sale equity
Q155: When the equity method is used to