Sign In Sign Up Ask an AI advisor
bethyboop1820
bethyboop1820
12.03.2020 • 
Business

1. Parex Corporation, a U.S. company, acquired a wholly-owned subsidiary, located in Hong Kong, at the beginning of the current year, for HK$100,000. The subsidiary's functional currency is the Hong Kong dollar. The balance sheet of the subsidiary at the date of acquisition was as follows: Assets Tangible assets HK$ 300,000 Liabilities and Equity Liabilities HK$260,000 Capital stock 10,000 Retained earnings 30,000 Total liabilities and equity HK$300,000 2. The HK$60,000 excess paid above book value is attributed to goodwill, which is not impaired during the current year. The exchange rate was $0.14/HK$ at the date of acquisition and $0.12/HK$ at the end of the current year. At the end of the year, what is the translated balance for goodwill?

Solved
Show answers

Ask an AI advisor a question

I want advice