Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2018, a u.s. company established a s

On January 1, 2018, a U.S. company established a subsidiary in Canada, having the following...

90.2K

Verified Solution

Question

Accounting

On January 1, 2018, a U.S. company established a subsidiary in Canada, having the following balance sheet (shown in Canadian dollars, or C$): Cash C$ 100,000 Liabilities C$ 200,000 Fixed assets, net 300,000 Capital stock 200,000 Total C$ 400 000 Total C$ 400,000

At December 31, 2018, the subsidiary reported the following trial balance:

Dr (Cr) Cash C$ 210,000 Fixed assets, net 250,000 Liabilities (220,000) Capital stock (200,000) Sales (500,000) Depreciation expense 50,000 Out-of-pocket expense 410,000 = C$ 0

Exchange rates are as follows:

January 1, 2018 $0.80

Average for 2018 0.82

December 31, 2018 0.85

What is the gain or loss that occurs when the subsidiarys trial balance is translated into U.S. dollars?

A. $11,200 gain

B. $10,800 loss

C. $ 1,200 gain

D. $ 9,700 loss

Answer & Explanation Solved by verified expert
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

The graph of the function 94 f x can be obtained from the graph of...

Geometry
Q

Espanol A box has 19 candies in it 3 are peppermint 5 are caramel and...

Basic Math
Q

how to synthesise of choline?

Chemistry
Q

How are environmental factors used to control microbal growth? Give some everyday examples.

Biology
Q

which is the reason why the equation is reached: dU = FcosΘds to describe the work...

Mechanical Engineering
Q

A ship sails 32 30 mi due east and then turns 29 25 north of...

Basic Math
Q

Subtract the following polynomials. Simplify your answer.(2x + 2x + 3) - (-4+ 2x ...

Basic Math
Q

Is the random variable given in the accompanying table discrete or continuous Explain The random...

Statistics
Q

Determine the value for c so that lim f x exists x 5 f x...

Calculus
Q

Which of the following entries would be the appropriate entry for writing off an uncollectible...

Accounting
Q

Al final del ao recin terminado, el pasivo corriente de Orem Company ascenda a $75...

Accounting
Q

Assets acquired or self-constructed should initially be measured at: a0 Assets acquired or self-constructed should...

Accounting