Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. charleston corporation operates a branch operation

Charleston Corporation operates a branch operation in a foreign country. Although this branch operates in euros,...

70.2K

Verified Solution

Question

Accounting

Charleston Corporation operates a branch operation in a foreigncountry. Although this branch operates in euros, the U.S. dollar isits functional currency. Thus, a remeasurement is necessary toproduce financial information for external reporting purposes. Thebranch began the year with 504,000 euros in cash and no otherassets or liabilities. However, the branch immediately used 312,000euros to acquire a warehouse. On May 1, it purchased inventorycosting 127,000 euros for cash that it sold on July 1 for 182,000euros cash. The branch transferred 26,000 euros to the parent onOctober 1 and recorded depreciation on the warehouse of 11,000euros for the year. Currency exchange rates for 1 euro follow:January 1 $1.47 = 1 euro May 1 1.51 = 1 July 1 1.53 = 1 October 11.51 = 1 December 31 1.41 = 1 Average for the year 1.49 = 1 What isthe remeasurement gain or loss to be recognized in the consolidatedincome statement? rev: 07_22_2017_QC_CS-91913 Multiple Choice$18,060 gain. $18,060 loss. $190 loss. $190 gain.

Answer & Explanation Solved by verified expert
4.1 Ratings (623 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

List the order of all structures and locations through which light passes to get from the...

Medical Sciences
Q

What is indirect and direct communication in neurons? Please categorize : Cardiac muscle , Smooth muscle,...

Medical Sciences
Q

If a candle is lit in a spacecraft without gravity... Question 8 options, pick one: a. The...

Mechanical Engineering
Q

Please briefly explain the concepts of the virtual machines and physical server are connected together,...

Electrical Engineering
Q

1. Please determine the maximum wind speed for a tropical cyclone with the following wind speeds....

Physics
Q

Education. Post-secondary educational institutions in the United States (trade schools, colleges, universities, etc.) traditionally offer four different...

Basic Math
Q

How old do scientists think the Earth is?Over 4 billion years old4 million years oldNot...

Physics
Q

Polecats Jackals Ironclads Games Won D Each 4 games How many more games did the...

Basic Math
Q

Evaluate the expression without using a calculator 34 If you have had difficulty with this...

Calculus
Q

Exit Ticket 10 16 1 At a school 40 of the students play a sport...

Algebra
Q

please help, i could not fit the question into one picture and it come out...

Accounting
Q

Suppose that you are considering a loan in which you will borrow $245,000 using a...

Finance