When Palm, Inc

question 77

Multiple Choice

When Palm, Inc.acquired its 100% investment in Star Co, a foreign entity, the excess of cost over book value was 10,000FC.This excess was traceable to a 10-year patent.The elimination entry to distribute the excess will include a(n)

• A)​debit to Patent for 10,000FC multiplied by the current exchange rate
• B)​debit to Patent for 10,000FC multiplied by the historical exchange rate
• C)​credit to Investment in Star for 10,000FC multiplied by the average exchange rate
• D)​credit to Cumulative Translation Adjustment for 10,000FC multiplied by the historical exchange rate

---

Definitions:

Explicitly Spelled Out

Information or instructions that are provided in a clear, direct, and detailed manner, leaving no room for confusion or interpretation.

Corporate

Relating to a large company or group of companies authorized to act as a single entity.

Body Positions

The posture or arrangement of the body, often communicating nonverbal cues or aiding in task performance.

Uncrossed Arms

A body language cue indicating openness, receptiveness, or a non-defensive attitude.