Answer:
(C) debit to Foreign-Currency Transaction Loss-$1040
Explanation:
Foreign currency related Financial assets and financial liabilities are usually revalued with any difference as a result of the exchange rates posted as a gain or loss in the income statement.
On transaction date, cost of assets
= 520000 * $0.034
On payment date, the amount paid
= 520000 * $0.036
The amount paid is higher than the liability recorded before hence the difference is recognized as a loss on foreign exchange.
= 520000 * $0.036 - 520000 * $0.034
= $1040
The best thing that I can do is to work in my task while giving instructions to my co worker on what to do in regard to the thing he or she needs help on. The least thing I can do is not to help someone who is in need as I know in the future I may need one's help too.
Answer: $5416.64
Explanation:
Based on the information given, $5000 will be deducted from its organizational cost of $17500, and we'll have $12500. Then, the capitalized cost over 6 months that's 180 days will be:
= Non deductible cost / 180 months
= $12500 / 180
= $69.44 per month
Since Ajax Inc began operation in July, the ammortization will be:
= $69.44 × 6 months
= $416.64
The amount that Ajax can deduct from its $17,500 organizational costs on its first tax return will be:
= $5000 + $416.64
= $5416.64
Answer:
Matched as below
Explanation:
a. Cashier’s check: A draft drawn by a bank on itself
b. Check: A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand
c. Certified check: A draft that is payable on demand, drawn on or payable through a bank, and specially designated
d. Traveler’s check: A draft that had been accepted by the bank on which it is drawn, promising to pay the check when it is presented
Answer:
1. Global depository receipts
2. External commercial borrowing
3. American depository receipts
4. Foreign currency convertible bonds
Explanation:
1. Global depository receipts. When a company buys shares of a foreign company, a certificate will be issued by the local depository bank, which allows for security supported by the shares purchased.
Here, Gracious ltd could raise funds by buying of shares in a company in India hence gives the company an avenue to hold shares in foreign country.
2. External commercial borrowing. These are loans granted to viable companies outside of India who are venturing into commercial businesses. Before theses loans are given, there is what is called eligibility status; which must be reviewed and thus confirm with the reserved bank of India before such loans are given.
3. American depository receipts. These are negotiable capital market instruments, issued by a bank in the United States, which shows the number of shares held by a foreign company, trading in the US capital market. A company could use this as a way of raising funds in the India capital market because it is well backed by the bank in the country where the company is.
4. Foreign currency convertible bonds. Here, a bond is issued in a different currency distinct from the issuer's local currency. What this means is that the money being sought for by the issuing company comes in a foreign currency denomination.
