Ginvold Co

question 66

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 a statement of retained earnings for this subsidiary in stickles and then translate the amounts into U.S. dollars.

---

Definitions:

U.S. Search

A service or tool used for looking up public records, background checks, or finding people in the United States.

Property Ownership

The legal right or title to possess and use property, which can be tangible like land and buildings or intangible such as intellectual property.

Home Value

The monetary worth of a residential property, influenced by factors such as location, size, condition, and market trends.

Possible Aliases

Alternative names or identities that a person may use, often referred to in legal and investigative contexts.