Ginvold Co Prepare a Balance Sheet for This Subsidiary in Stickles and on January

question 35

Essay

Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2013 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, 2014. A building was then purchased for §170,000 on January 1, 2013. 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, 2013. The functional currency for the subsidiary was the Stickle (§). Currency exchange rates were as follows:
$\begin{array}{ll}\text { January } 1,2013 & \S 1=\$ 2.40 \\\text { October } 1,2013 & \S 1=\$ 2.22 \\\text { Average for } 2013 & \S 1=\$ 2.28 \\\text { December } 31,2013 & \S 1=\$ 2.16\end{array}$ Prepare a balance sheet for this subsidiary in stickles and then translate the amounts into U.S. dollars.

Describe the developmental stages and metamorphosis processes in insects.

Understand the importance of arthropods in human-related contexts, including disease transmission and ecosystem services.

Identify specific adaptations that have allowed arthropods to occupy terrestrial environments.

Understand the basic anatomical and physiological features of nematodes and their role in the environment.

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Definitions:

Tariff Revenue

Income generated by a government from imposing import taxes on goods brought into the country.

Domestic Price

The price of goods or services within a country's borders, influenced by local supply and demand conditions.

Free Trade

refers to international trade left to its natural course without tariffs, quotas, or other restrictions.

Leather Wallets

Small, foldable cases often made of leather used for holding personal items such as cash, credit cards, and identification documents.