Boerkian Co

question 98

Essay

Boerkian Co. started 2021 with two assets: Cash of §26,000 (Stickles)and Land that originally cost §72,000 when acquired on April 4, 2018. On May 1, 2021, the company rendered services to a customer for §36,000, an amount immediately paid in cash. On October 1, 2021, the company incurred an operating expense of §22,000 that was immediately paid. No other transactions occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows:
Assume Boerkian was a foreign subsidiary of a U.S. multinational company and the U.S. dollar was the functional currency of the subsidiary. Prepare a schedule of changes in the net monetary assets of Boerkian for the year 2021 and properly label the resulting gain or loss.

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Definitions:

Legacy

Something transmitted by or received from an ancestor or predecessor from the past.

World Community

A term referring to the international aggregation of nations and peoples, often used to highlight global cooperation and interdependence.

Cold War

A period of geopolitical tension between the Soviet Union and the United States, along with their respective allies, from the end of World War II in 1945 until the dissolution of the Soviet Union in 1991, characterized by propaganda, espionage, and proxy wars but avoiding direct military conflict.

Iran-Contra Scandal

A political scandal in the United States during the 1980s involving the clandestine sale of weapons to Iran to fund Contra rebels in Nicaragua, contrary to U.S. law.