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On January 2,20X8,Polaris Company Acquired a 100% Interest in the Capital

Question 34

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On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Ski's balance sheet contained the following information:
On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Ski's balance sheet contained the following information: Ski's income statement for 20X8 is as follows: The balance sheet of Ski at December 31,20X8,is as follows: Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow: Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8. -Refer to the above information.Assuming Ski's FCU is the functional currency,what is the net translation adjustment that result from translating Ski's trial balance into U.S.dollars at December 31,20X8? A) $396,500 debit B) $285,000 credit C) $405,000 credit D) $411,000 credit Ski's income statement for 20X8 is as follows:
On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Ski's balance sheet contained the following information: Ski's income statement for 20X8 is as follows: The balance sheet of Ski at December 31,20X8,is as follows: Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow: Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8. -Refer to the above information.Assuming Ski's FCU is the functional currency,what is the net translation adjustment that result from translating Ski's trial balance into U.S.dollars at December 31,20X8? A) $396,500 debit B) $285,000 credit C) $405,000 credit D) $411,000 credit The balance sheet of Ski at December 31,20X8,is as follows:
On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Ski's balance sheet contained the following information: Ski's income statement for 20X8 is as follows: The balance sheet of Ski at December 31,20X8,is as follows: Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow: Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8. -Refer to the above information.Assuming Ski's FCU is the functional currency,what is the net translation adjustment that result from translating Ski's trial balance into U.S.dollars at December 31,20X8? A) $396,500 debit B) $285,000 credit C) $405,000 credit D) $411,000 credit Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow:
On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Ski's balance sheet contained the following information: Ski's income statement for 20X8 is as follows: The balance sheet of Ski at December 31,20X8,is as follows: Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow: Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8. -Refer to the above information.Assuming Ski's FCU is the functional currency,what is the net translation adjustment that result from translating Ski's trial balance into U.S.dollars at December 31,20X8? A) $396,500 debit B) $285,000 credit C) $405,000 credit D) $411,000 credit Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8.
-Refer to the above information.Assuming Ski's FCU is the functional currency,what is the net translation adjustment that result from translating Ski's trial balance into U.S.dollars at December 31,20X8?


A) $396,500 debit
B) $285,000 credit
C) $405,000 credit
D) $411,000 credit

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