A Foreign Subsidiary Was Acquired on January 1, 2018

question 59

Essay

A foreign subsidiary was acquired on January 1, 2018.Determine the exchange rate used to restate the following accounts at December 31, 2018.Land was purchased on October 1, 2018.Relevant exchange dates follow:
(A) January 1, 2018
(B) October 1, 2018
(C) December 31, 2018
(D) Average, 2018
(E) Composite, using multiple dates.
Identify the exchange rate used to translate items 1-5 when the functional currency is the foreign currency:
____ 1.Land.
____ 2.Equipment.
____ 3.Bonds payable.
____ 4.Common stock.
____ 5.Retained earnings.
Identify the exchange rate used to remeasure the items 6-10 when the functional currency is the U.S.dollar:
____ 6.Land.
____ 7.Equipment.
____ 8.Bonds payable.
____ 9.Common stock.
____ 10.Retained earnings.

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