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

question 3

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 balance sheet for this subsidiary in stickles and then translate these amounts into U.S.dollars.

---

Definitions:

Terminal Window

A text-based interface program that allows the user to interact with the operating system or software by entering commands through a keyboard.

Drive Wipe

A technique that can be used to eradicate personal or corporate data from a hard drive before donating or reusing a computer.

Defragmenting

The process of consolidating fragmented files on a hard disk, improving efficiency and access times by organizing data contiguously.

Toner Cartridge

A replaceable component in a laser printer that contains the toner powder used to print text and images on paper.