Ginvold Co

question 23

Essay

Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2021 by acquiring all of the common stock for §50,000 Stickles, the local currency. This subsidiary immediately borrowed §120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2022. A building was then purchased for §170,000 on January 1, 2021. This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was immediately rented for three years to a group of local doctors for §6,000 per month. By year-end, payments totaling §60,000 had been received. On October 1, §5,000 were paid for a repair made on that date and it was the only transaction of this kind for the year. A cash dividend of §6,000 was transferred back to Ginvold on December 31, 2021. The functional currency for the subsidiary was the Stickle (§). Currency exchange rates were as follows: Prepare an income statement for this subsidiary in stickles and then translate these amounts into U.S. dollars.

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Definitions:

Manipulative Suggestion

A technique used to subtly influence or control someone's decision-making process, often viewed negatively for its ethical implications.

Suggestive Proposition

A persuasive statement or question that implies or recommends a specific course of action or decision, often used in sales and advertising.

Indirect Suggestion

A non-direct approach in communication that implies or hints at something, often used in persuasive contexts to subtly influence behavior or decision-making.

Counter Suggestion

is a strategy used in negotiations and discussions where a party presents an alternative proposal in response to another's suggestion.