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.

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Definitions:

Maximum Parsimony

Maximum parsimony is a statistical method for reconstructing phylogenies that identifies the tree topology that minimizes the total amount of change, or the number of steps, required to fit the data to the tree.

Introgression

Introgression describes the movement of alleles from one species or population to another.

Incomplete Lineage Sorting

Occurs when a genetic polymorphism persists through several speciation events. When fixation of alternative alleles eventually occurs in the descendent species, the pattern of retention of alleles may yield a gene tree that differs from the true phylogeny of the species.

Genetic Hitchhiking

Genetic hitchhiking occurs when an allele increases in frequency because it is physically linked to a positively selected allele at a nearby locus.