Answer:
Accounts Amount (in Dinar)
Cash_________________28,000
Accounts Receivable_____82,000
Land________________220,000
Total Assets__________330.000
Less: Notes Payable___(170,000)
Net Assets___________160,000
The translation adjustment for this subsidiary for the year 2017?
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net assets, 1/1_______160,000__________0.50_______80,000
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Net assets, 12/31_______180.000___________________88,200
Net assets, 12/31 at current__180,000______0.61_______109.800
Translation adjustment (positive) ____________________(21,600)
What is the remeasurement gain or loss for 2017
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net Monetary Asset, 1/1 __28,000________0.56_______15,680.00
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Add:Accounts Receivable_80,000________0.56______44,800
Less: Accounts Payable_(170,000)________0.56_____(95,200)
Net monetary assets, 12/31_(42,000)______________(26,540.00)
Net monetary assets, 12/31 at current exchange rate
(42,000)_________0.61____(25,620)
Remeasurement gain - - 920.00
Translated value of land is $134,200 ( derived from 220,000 dinar x 0.61)
Remeasured value of land is $116,600 (derived from 220,000 dinar x 0.53)
Explanation:
Accounts Amount (in Dinar)
Cash_________________28,000
Accounts Receivable_____82,000
Land________________220,000
Total Assets__________330.000
Less: Notes Payable___(170,000)
Net Assets___________160,000
The translation adjustment for this subsidiary for the year 2017?
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net assets, 1/1_______160,000__________0.50_______80,000
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Net assets, 12/31_______180.000___________________88,200
Net assets, 12/31 at current__180,000______0.61_______109.800
Translation adjustment (positive) ____________________(21,600)
What is the remeasurement gain or loss for 2017
Particulars Amount in Dinar Translation Rate Amount in Dollar
Net Monetary Asset, 1/1 __28,000________0.56_______15,680.00
Add: Rendered services_140,000________0.57________79,000
Less: Incurred expense _(120,000)________0.59_______(70,800)
Add:Accounts Receivable_80,000________0.56______44,800
Less: Accounts Payable_(170,000)________0.56_____(95,200)
Net monetary assets, 12/31_(42,000)______________(26,540.00)
Net monetary assets, 12/31 at current exchange rate
(42,000)_________0.61____(25,620)
Remeasurement gain - - 920.00
Translated value of land is $134,200 ( derived from 220,000 dinar x 0.61)
Remeasured value of land is $116,600 (derived from 220,000 dinar x 0.53)
