A Foreign Subsidiary Was Purchased on January 1,2008

question 20

Essay

A foreign subsidiary was purchased on January 1,2008.Determine the exchange rate used to restate the following accounts at December 31,2008.Land was purchased on October 1,2008.Relevant exchange dates follow:
(A)January 1,2008
(B)October 1,2008
(C)December 31,2008
(D)Average,2008
(E)Composite,using multiple dates.
Identify the exchange rate used to translate items 1-5:
____ 1.Land.
____ 2.Equipment.
____ 3.Bonds payable.
____ 4.Common stock.
____ 5.Retained earnings.
Identify the exchange rate used to remeasure the items 6-10:
____ 6.Land.
____ 7.Equipment.
____ 8.Bonds payable.
____ 9.Common stock.
____ 10.Retained earnings.

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Definitions:

DZ Twins

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