Water Bottling Inc

question 8

Essay

Water Bottling Inc.(WBI)is a 100% wholly owned subsidiary with operations in France.WBI was purchased by a Canadian parent on January 1,20X5.The financial records of WBI are maintained in euros and provide the following information with respect to equipment,intangibles and goodwill.
Equipment - purchased on January 1,20X5 for €250,000 - depreciated over 5 years on a straight-line basis.
Equipment - purchased on January 1,20X6 for €175,000 - depreciated over 5 years on a straight-line basis.
Required:
Assume that WBC's functional currency is the Canadian dollar.Calculate the translated Canadian dollar balances for the following accounts for December 31,20X7
a.Equipment
b.Accumulated depreciation - equipment
c.Depreciation expense

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Definitions:

Surface Runoff

Water flow that occurs when soil is saturated or impermeable and excess water from rain, meltwater, or other sources flows over the land.

Infiltration

The process through which water on the ground surface enters the soil.

Diagram

A simplified drawing or plan that represents ideas, structures, or systems, typically with labels and annotations.

Aquifer

An underground layer of water-bearing permeable rock or materials through which water can move and be stored.