A Foreign Subsidiary Was Acquired on January 1, 2011

question 49

Short Answer

A foreign subsidiary was acquired on January 1, 2011. Determine the exchange rate used to restate the following accounts at December 31, 2011. Land was purchased on October 1, 2011. Relevant exchange dates follow:
(A) January 1, 2011
(B) October 1, 2011
(C) December 31, 2011
(D) Average, 2011
(E) Composite, using multiple dates.
Identify the exchange rate used to translate items 1-5 when the functional currency is the foreign currency:
____ 1. Land.
____ 2. Equipment.
____ 3. Bonds payable.
____ 4. Common stock.
____ 5. Retained earnings.
Identify the exchange rate used to remeasure the items 6-10 when the functional currency is the U.S. dollar:
____ 6. Land.
____ 7. Equipment.
____ 8. Bonds payable.
____ 9. Common stock.
____ 10. Retained earnings.

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Definitions:

Successive Approximation

A method used in behavior therapy to gradually achieve a target behavior through small steps towards the goal.

Fixed-interval Scheduling

A type of operant conditioning reinforcement schedule where rewards are given after a fixed time period, causing a scalloped pattern of response rates.

Discrimination

refers to the unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Respondent Behavior

Automatic responses triggered by specific stimuli without conscious decision, such as reflexes.