On January 1, 2011, Paste Unlimited, a U

question 37

Essay

On January 1, 2011, Paste Unlimited, a U.S.company, acquired 100% of Sticky Corporation of Italy, paying an excess of 112,500 euros over the book value of Sticky's net assets.The excess was allocated to undervalued equipment with a five year remaining useful life.Sticky's functional currency is the euro, and the books are kept in euros.Exchange rates for the euro for 2011 are:
Required:
1.Determine the depreciation expense on the excess allocated to equipment for 2011 in U.S.dollars.
2.Determine the unamortized excess allocated to equipment on December 31, 2011 in U.S.dollars.
3.If Sticky's functional currency was the U.S.dollar, what would be the depreciation expense on the excess allocated to the equipment for 2011?

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Definitions:

Injunctions

Legal orders issued by a court that either restrain a party from doing certain actions or compel them to perform specific acts.

Unions

Organizations that represent workers in various industries to negotiate with employers on wages, hours, benefits, workplace safety, and other employment terms and conditions.

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The right to express any opinions without censorship or restraint.

Injunctions

Court orders that either restrain a party from undertaking certain actions or require them to perform specific acts, often used in labor disputes to limit the actions of labor organizations or employers.