REFERENCE: Ref.10_12 Ginvold Co.began Operating a Subsidiary in a Foreign Country on Country

question 31

Essay

REFERENCE: Ref.10_12
Ginvold Co.began operating a subsidiary in a foreign country on January 1,2008 by acquiring all of the common stock for §50,000.This subsidiary immediately borrowed §120,000 on a five-year note with ten percent interest payable annually beginning on January 1,2008.A building was then purchased for §170,000.This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method.The building was immediately rented for three years to a group of local doctors for §6,000 per month.By year-end,payments totaling §60,000 had been made.On October 1,§5,000 were paid for a repair made on that date.A cash dividend of §6,000 was transferred back to Ginvold on December 31,2008.The functional currency for the subsidiary was the stickle.Currency exchange rates were as follows:
SHAPE \* MERGEFORMAT

-Prepare a statement of retained earnings for this subsidiary in stickles and then translate these amounts into U.S.dollars.

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Definitions:

Technocentric

An ideology or perspective that prioritizes technology and its development as central to societal progress and human well-being.

Anthropocentric

Refers to a viewpoint that considers human beings as the central or most significant species on the planet, often at the expense of the environment or other species.

Sociotechnical Systems

An approach considering the interaction between people and technology in workplaces, emphasizing the importance of both social and technical elements in designing systems.

Telecommuting

A work arrangement where employees do not commute to a central place of work, using telecommunication and information technology to perform their job remotely.