On January 1, 2020, Larmer Corp The Following Exchange Rates Were in Effect During 2020

question 10

Essay

On January 1, 2020, Larmer Corp. (a Canadian company) purchased 80% of Martin Inc, an American company, for US$50,000.
Martin's book values approximated its fair values on that date except for plant and equipment, which had a fair value of US$30,000 with a remaining life expectancy of 5 years. A goodwill impairment loss of US$1,000 occurred during 2020. Martin's January 1, 2020 Balance Sheet is shown below (in U.S. dollars):
$\begin{array}{|l|r|}\hline \text { Current Monetary Assets } & \$ 50,000 \\\hline \text { Inventory } & \$ 40,000 \\\hline \text { Plant and Equipment } & \$ 25,000 \\\hline \text { Total Assets } & \$ 115,000 \\\hline \text { Current Liabilities } & \$ 45,000 \\\hline \text { Bonds Payable (maturity: January 1,2026) } & \$ 20,000 \\\hline \text { Common Shares } & \$ 30,000 \\\hline \text { Retained Earnings } & \$ 20,000 \\\hline \text { Total Liabilities and Equity } & \$ 115,000 \\\hline\end{array}$ The following exchange rates were in effect during 2020:
$\begin{array}{|l|r|}\hline \text { January 1, 2020: } & \text { US } \$ 1=\text { CDN } \$ 1.3250 \\\hline \text { Average for 2020: } & \text { US } \$ 1=\text { CDN } \$ 1.3350 \\\hline \text { Date when Ending Inventory Purchased: } & \text { US } \$ 1=\text { CDN } \$ 1.34 \\\hline \text { December } 31,2020: & \text { US } \$ 1=\text { CDN } \$ 1.35\\\hline\end{array}$ Sales, purchases and other expenses occurred evenly throughout the year.
Dividends declared and paid December 31, 2020.
The financial statements of Larmer (in Canadian dollars) and Martin (in U.S. dollars) are shown below:
Balance Sheets
$\begin{array}{|l|l|l|} \hline& \text { Larmer } & \text { Martin } \\\hline \text { Current Monetary Assets } & \$ 42,050 & \$ 65,000 \\\hline \text { Inventory } & \$ 60,000 & \$ 50,000 \\\hline \text { Plant and Equipment } & \$ 23,500 & \$ 20,000 \\\hline \text { Investment in Martin (at Cost) } & \$ 66,250 & \\\hline \text { Assets } & \$ 191,800 & \$ 135,000 \\\hline \text { Current Liabilities } & \$ 50,000 & \$ 48,000 \\\hline \text { Bonds Payable (maturity: January } 1,2026 \text { ) } & \$ 35,000 & \$ 20,000 \\\hline \text { Common Shares } & \$ 60,000 & \$ 30,000 \\\hline \text { Retained Earnings } & \$ 30,000 & \$ 20,000 \\\hline \text { Net Income } & \$ 28,800 & \$ 27,000 \\\hline \text { Dividends } & (\$ 12,000) & (\$ 10,000) \\\hline \text { Liabilities and Equity } & \$ 191,800 & \$ 135,000 \\\hline \text { Income Statements } & \text { Larmer } & \text { Martin } \\\hline \text { Sales } & \$ 80,000 & \$ 50,000 \\\hline \text { Dividend Income } & \$ 10,800 \\\hline \text { Cost of Sales } & (\$ 40,000) & (\$ 15,000) \\\hline \text { Depreciation } & (\$ 10,000) & (\$ 5,000) \\\hline \text { Other expenses } & (\$ 12,000) & (\$ 3,000) \\\hline \text { Net Income } & \$ 28,800 & \$ 27,000\\\hline \end{array}$ Prepare Larmer's December 31, 2020 Consolidated Balance Sheet if Martin's functional currency was the Canadian dollar (i.e. the same functional currency as the parent).

Acknowledge the influence of psychologists’ personal values on research.

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Definitions:

Cell Division

The process by which a parent cell divides into two or more daughter cells, critical for growth, reproduction, and repair in organisms.

Bud Scale Scars

Marks left on a twig after bud scales (which protect the bud during winter) fall off in the spring, indicating where new growth began.

Haustoria

Specialized structures of parasitic or symbiotic fungi and plants that penetrate the host's tissue to absorb nutrients.

Adventitious

Referring to structures that develop in an unusual place, such as roots growing from stems or leaves instead of from the plant's root system.