Aus Co Ltd Has a Foreign Operation Based in New

question 5

Multiple Choice

Aus Co Ltd has a foreign operation based in New Zealand.The following information was extracted from the foreign operation's financial statements for the period ended 30 June 2015: $$\begin{array} { | l | r | } \hline & \text { \$NZ 000 } \\\hline \text { Machinery (purchased 1 July 2013, revalued 1 June 2015) } & 13000 \\\hline \text { Inventory on hand (purchased last quarter 2015) } & 9800 \\\hline \text { Depreciation expense-machinery } & 700 \\\hline \text { Land (purchased 1 July 2013) } & 75000 \\\hline\end{array}$$ Exchange rate information is: $$\begin{array} { | l | l | } \hline 1 \text { July } 2013 & \text { A\$1.00 } = \$ N Z 1.1255 \\\hline \text { Average for year ended } 30 \text { June } 2015 & \text { A\$1.00 } = \$ N Z 1.2135 \\\hline 1 \text { June } 2015 & \text { AS1.00 } = \$ N Z 1.1024 \\\hline \text { Last quarter } 2015 & \text { A\$1.00 } = \$ N Z 1.2503 \\\hline 30 \text { June } 2015 & \text { AS1.00 } = \$ N Z 1.3250 \\\hline\end{array}$$ What is the amount at which each item will be translated (rounded to the nearest A$) ?

• A) \[\begin{array} { | l | r | }
• \hline & \text { A\$ } \\
• \hline \text { Machinery } & 17225000 \\
• \hline \text { Inventory on hand } & 1298500 \\
• \hline \text { Depreciation expense-machinery } & 849450 \\
• \hline \text { Land } & 99375000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | }
• \hline & { \text { AS } } \\
• \hline \text { Machinery } & 9811321 \\
• \hline \text { Inventory on hand } & 9396226 \\
• \hline \text { Depreciation expense-machinery } & 576844 \\
• \hline \text { Land } & 56603774 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | }
• \hline &{ \text { AS } } \\
• \hline \text { Machinery } & 14331200 \\
• \hline \text { Inventory on hand } & 12252940 \\
• \hline \text { Depreciation expense-machinery } & 771680 \\
• \hline \text { Land } & 84412500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | }
• \hline & \text { AS } \\
• \hline \text { Machinery } & 11792453 \\
• \hline \text { Inventory on hand } & 7838119 \\
• \hline \text { Depreciation expense-machinery } & 634978 \\
• \hline \text { Land } & 66637050 \\
• \hline
• \end{array}\]

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Definitions:

Liability

Legal responsibility for one's actions or omissions, often resulting in the obligation to pay damages or compensation for any harm caused.

Empire Theatre

A notable establishment or venue designated for the performing arts, typically named so for its grandeur or historical significance.

Private Carriers

Transportation entities that transport goods or passengers exclusively for their own company's needs, as opposed to public carriers that offer services to the general public.

Bailments

Bailments refer to the process of placing personal property in the temporary custody or control of another, with the expectation of its return or disposal as per agreement.