Do not give image format AU.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit.During the year the parent company sold inventory that had cost $24, 400 to the subsidiary on account for $30,000when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parentcompany for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchangerate at the fiscal year-end was $0.4994. Compute the amounts that would be reported for the inventory and accountspayable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit.

All foreign currency transaction should be recognize using the rate on the date of transaction,…

rate at the fiscal year-end was $0.4994. Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit.

rate at the fiscal year-end was $0.4994. Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 25PC

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AUS. company owns an 80% interest in a company located on Mars, Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,900 to the subsidiary on account for $29,100 when the exchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year end was $0.4994, (a1) Your answer is correct. Compute the amounts that would be reported for the inventory and acce unts payable in the subsidiary's translated balance sheet. The entity's functional currency is the Martian Credit. (Round answers to O decimal places, eg. 5,125)
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