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r-ruslan [8.4K]
3 years ago
12

A foreign subsidiary of Thun Corporation has one asset (inventory) and no liabilities. The functional currency for this subsidia

ry is the yuan. The inventory was acquired for 100,000 yuan when the exchange rate was $0.16 = 1 yuan. Consolidated statements are to be produced, and the current exchange rate is $0.12 = 1 yuan. Which of the following statements is true for the consolidated financial statements?
a. A remeasurement gain must be reported.
b. A positive translation adjustment must be reported.
c. A negative translation adjustment must be reported.
d. A remeasurement loss must be reported.
Business
1 answer:
Mrrafil [7]3 years ago
7 0

Answer: c. A negative translation adjustment must be reported

Explanation:

The Consolidated financial statements will need to be translated to reflect the depreciation in the Yuan. Seeing as the Yuan is the functional currency, it needs to be translated by the current rate.

The Yuan dropped in value, that means that the inventory dropped in value as well.

For this reason, the corrective measure is a NEGATIVE TRANSACTION ADJUSTMENT in the Consolidated books.

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Answer:

2. False

Explanation:

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A person diagnosed with dementia, which impairs his decision making would normally be regarded as incapable to signing a contract.

But, capacity is ascertained as per the situation i.e at the time the contract is signed or entered into.

In the given case, Ronald entered a contract while he was sane and in healthy state of mind. His judgement at the time of entering such a contract wasn't impaired by dementia.

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Answer:

Assuming that Samuel's retiring age is exactly 65 years old, and he starts collecting benefits 24 months before his full retirement age (exactly on his birthday number 63), then he will receive $867 per month (or 86.7% of his full benefits).

This calculation varies depending on the number of months, e.g.

months before full retirement age                   % of full retirement benefit

24                                                                     86.7%

23                                                                      87.2%

22                                                                      87.8%

21                                                                      88.3%

20                                                                      88.9%

19                                                                      89.4%

18                                                                      90.0%

17                                                                      90.6%

16                                                                      91.1%

15                                                                      91.7%

14                                                                      92.2%

13                                                                      92.8%

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Answer:

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Explanation:

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