Use the Information Below to (A) Translate the Year-End Financial

question 35

Essay

Use the information below to (a) translate the year-end financial statements of Perfect Company, the foreign subsidiary, using the temporal method, and (b) prepare a schedule to compute the translation gain or loss for Perfect Company.Round numbers to the nearest dollar.
On January 2, 2014, Design Inc., a U.S.parent company, purchased a 100% interest in Perfect Company, a subdivision located in Switzerland.The purchase method of accounting was used to account for the acquisition.The 2014 financial statements for Perfect Company, the subsidiary, in Swiss francs were as follows:

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Definitions:

Ordinary Care

The level of attention, caution, and prudence that a reasonable person in similar circumstances would exercise to avoid harm.

Incompetent Person

An individual legally declared unable to handle their own affairs due to mental or physical incapacity.

Guardian

A person legally appointed to manage and make decisions for someone who is unable to take care of their personal affairs, such as a minor or incapacitated individual.

Sufficient Funds

A term referring to the adequate amount of money in an account to cover drafts, checks, or transactions.