On January 2, 20X8, Johnson Company Acquired a 100% Interest

question 20

Multiple Choice

On January 2, 20X8, Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Perth's balance sheet contained the following information:
Perth's income statement for 20X8 is as follows:
The balance sheet of Perth at December 31, 20X8, is as follows:
Perth declared and paid a dividend of 20,000 FCU on October 1, 20X8. Spot rates at various dates for 20X8 follow:
Assume Perth's revenues, purchases, operating expenses, depreciation expense, and income taxes were incurred evenly throughout 20X8.

-Refer to the above information.Assuming Perth's local currency is the functional currency,what is the amount of translation adjustment that appears on Johnson's consolidated financial statements at December 31,20X8?

• A) $419,184 credit
• B) $416,884 credit
• C) $405,884 debit
• D) $398,500 credit

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Definitions:

Leadership Outcomes

The results or impacts of leadership practices, including aspects like team performance, satisfaction, and the achievement of organizational objectives.

Leader's Competencies

A set of skills, knowledge, and abilities that are considered necessary for effective leadership.

Mumford's Skills Model

a framework for understanding leadership that emphasizes the importance of a leader's capabilities, including technical skills, conceptual skills, and interpersonal skills.

Katz's Hierarchical Three Skills Model

A framework suggesting three core leadership skills: technical, human, and conceptual, necessary at different levels of an organization.