desiree6005

20.10.2021 • 

Business

A subsidiary of Reynolds Inc., a U.S. company, was located in a foreign country. The local currency of this subsidiary was the Euro (€) while the functional currency of this subsidiary was the U.S. dollar. The subsidiary acquired Equipment A on January 1, 2018, for €250,000. Depreciation expense associated with Equipment A was €25,000 per year. On January 1, 2020, the subsidiary acquired Equipment B for €150,000 and Equipment B had associated depreciation expense of €10,000. The subsidiary owned no other depreciable assets. Currency exchange rates between the U.S. dollar and the Euro were as follows: January 1, 2018 €1 = $1.20
December 31, 2018 €1 = $1.14
2018 Average €1 = $1.18
January 1, 2019 €1 = $1.15
December 31, 2019 €1 = $1.21
2019 Average €1 = $1.18
January 1, 2020 €1 = $1.26
December 31, 2020 €1 = $1.30
2020 Average €1 = $1.28

Required:
What amount would have been reported for depreciation expense related to the equipment owned by the subsidiary in Reynolds’s consolidated balance sheet at December 31, 2018?

Ответ:

crystalclear99

17.08.2020

Business

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Farmers Grow Angry and Desperate. During World War I, farmers worked hard to produce record crops and livestock. When prices fell they tried to produce even more to pay their debts, taxes and living expenses. In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms.

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