Aus Co Ltd Has a Foreign Operation Based in Japan

question 33

Multiple Choice

Aus Co Ltd has a foreign operation based in Japan.The following information was extracted from the foreign operation's financial statements for the period ended 30 June 2015: $$\begin{array} { | l | r | } \hline & ¥ 000 \\\hline \text { Machinery (at cost purchased 1 July 2013) } & 85000 \\\hline \text { Inventory on hand (purchased last quarter 2015) } & 16000 \\\hline \text { Depreciation expense-machinery } & 8200 \\\hline \text { Land (purchased 1 July 2013, revalued 1 June 2015) } & 150000 \\\hline\end{array}$$ Exchange rate information is: $$\begin{array} { | l | r | } \hline 1 \text { July } 2013 & ¥ 1.00 = A S 0.0136 \\\hline \text { Average for year ended } 30 \text { June } 2015 & ¥ 1.00 = A \$ 0.0153 \\\hline 1 \text { June } 2015 & ¥ 1.00 = A S 0.0146 \\\hline \text { Last quarter } 2015 & ¥ 1.00 = A \$ 0.0150 \\\hline 30 \text { June } 2015 & ¥ 1.00 = A \$ 0.0165 \\\hline\end{array}$$ What is the amount at which each item would be translated (rounded to the nearest A$) ?

• A) \[\begin{array} { | l | r | }
• \hline & { \text { A\$ } } \\
• \hline \text { Machinery } & 1402500 \\
• \hline \text { Inventory on hand } & 264000 \\
• \hline \text { Depreciation expense-machinery } & 125460 \\
• \hline \text { Land } & 2475000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | }
• \hline & \text { A\$ } \\
• \hline \text { Machinery } & 1156000 \\
• \hline \text { Inventory on hand } & 240000 \\
• \hline \text { Depreciation expense-machinery } & 111520 \\
• \hline \text { Land } & 2190000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | }
• \hline & { \text { A\$} } \\
• \hline \text { Machinery } & 1402000 \\
• \hline \text { Inventory on hand } & 233600 \\
• \hline \text { Depreciation expense-machinery } & 111520 \\
• \hline \text { Land } & 2040000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | }
• \hline & { \text { AS } } \\
• \hline \text { Machinery } & 1156000 \\
• \hline \text { Inventory on hand } & 264000 \\
• \hline \text { Depreciation expense-machinery } & 135300 \\
• \hline \text { Land } & 2040000\\
• \hline
• \end{array}\]

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Definitions:

Early Childhood

The period in human life from birth to the age of eight, characterized by rapid mental and physical development.

Unconscious Mental

Pertains to processes in the mind that occur automatically and are not available to introspection, including desires, feelings, and motivations.

Naturalistic Observation

An investigative technique where participants are watched in their natural settings without any interference from the investigator.

Natural Conditions

Environmental or ecological circumstances not influenced or modified by human activities, often serving as a baseline or control in scientific studies.