xman839

24.08.2021 • 

Business

Christina Company (a U.S.-based company) has a subsidiary in Canada that began operations at the start of 2020 with assets of 146,000 Canadian dollars (CAD) and liabilities of CAD 82000. During this initial year of operation, the subsidiary reported a profit of CAD 30,000. It distributed two dividends, each for CAD 5,400 with one dividend declared on March 1 and the other on October 1. Applicable U.S. dollar ($) exchange rates for 1 Canadian dollar follow: January 1, 2020 (start of business) $0.73
March 1, 2020 0.71
Weighted average rate for 2020 0.70
October 1, 2020 0.69
December 31, 2020 0.68

Required:
a. Assume that the Canadian dollar is this subsidiary’s functional currency. What translation adjustment would the company report for the year 2020?
b. Assume that on October 1, 2020, Christina entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, the company agreed to sell CAD 240,000 in three months at a forward exchange rate of $0.69/CAD1. Prepare the journal entries required by this forward contract.
c. Compute the net translation adjustment the company will report in accumulated other comprehensive income for the year 2020 under this second set of circumstances.

Ответ:

daijahamaker062816

05.01.2022

Business

---

$119

Explanation:

For computing the marginal social benefit of the first plant the relevant information is provided as per the question below:-

Robin first plant benefit per day = $47

Greg first plant benefit per day = $41

Ray first plant benefit per day = $31

The computation of marginal social benefit of the first plant is shown below:-

Marginal social benefit of the first plant = Robin first plant benefit per day + Greg first plant benefit per day + Ray first plant benefit per day

= $47 + $41 + $31

= $119

Therefore for computing the marginal social benefit of the first plant we simply added all the three employees first plant benefit per day.

---

0,0(0 оценок)