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D’Jais Corporation, a U.S. company, owns 100% of Bar ACorporation, a New Zealand company. Bar A's equipment was acquiredon the following dates (amounts are stated in New Zealanddollars):

Jan. 1, 2017 purchased equipment for 40,000 NZ dollars

Jul. 1, 2017 purchased equipment for 80,000 NZ dollars

Jan. 1, 2018 purchased equipment for 50,000 NZ dollars

Jul. 1, 2018 sold equipment purchased on Jan. 1, 2017 for 35,000NZ dollars

Exchange rates for the NZ dollar on various dates are:

Jan. 1,2017          $.500                          Jan. 1,2018          $.530

Jul. 1,2017          $.520                          Jul. 1,2018          $.505

Dec. 31, 2017      $.530                          Dec. 31, 2018        $.490

2017 avg. rate      $.515                          2018 avg. rate       $.510

Bar A's equipment has an estimated 5-year life with no salvagevalue and is depreciated using the straight-line method,calculating depreciation expense on a monthly basis. Bar A'sfunctional currency is the U.S. dollar, but the company uses the NZdollar for recordkeeping.

Required:

1. Determine the value of Bar A's equipment account on December31, 2018 in U.S. dollars.

2. Determine Bar A's depreciation expense for 2018 in U.S.dollars.

3. Determine the gain or loss from the sale of equipment on July1, 2018 in U.S. dollars.