The spot rate for the Argentine peso is $0.3600 per peso. Over the year, inflation in Argentina is 10 percent and U.S. inflation
1 answer:
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Answer:
a) 30,667 per year
b) year 1 : 41,308
year 2 : 31,878
year 3 : 18,814
c)
year 1 $65,333.33
year 2 $21,777.78
year 3 $4,888.89
Explanation:
a)
(98,000 - 6,000) / 3 = 30,667
b)
(98,000-6,000)/ 20,000 = 4.6
year 1 8,980 x 4.6 = 41,308
year 2 6,930 x 4.6 = 31,878
year 3 4,090 x 4.6 = 18,814
c) double declining rate:
2/useful life = 2/3
then we apply this rate to the carrying value
Year Beginning Dep-Expense Acc. \: Dep Ending
- - - - $98,000.00
1 $98,000.00 $65,333.33 $65,333.33 $32,666.67
2 $32,666.67 $21,777.78 $87,111.11 $10,888.89
3 $10,888.89 $4,888.89 $92,000.00 $6,000.00