Accounting Assignment | Custom Assignment Help
White Company was incorporated on January 2, Year 1, and commenced active operations immediately.
80,000 100,000
Additional Information•
- Black uses the cost method to account for its investment in White.
- White purchased its building on December 31, Year 3.
- The recoverable amount for goodwill at the end of Year 6 was FP720,000.
- Dividends were declared and paid on July 1.
- Foreign exchange rates were as follows:
- Jan. 2, Year 1 FP1 = $0.30
- Dec. 31, Year 3 FP1 = $0.24
- Dec. 31, Year 5 FP1 = $0.20
- Average for Year 6 FP1 = $0.18
- July 1, Year 6FP1 = $0.17
- Dec. 31, Year 6FP1 = $0.15
Required:
(a) Compute the balances that would appear in the Year 6 consolidated financial statements for the following items, assuming that White’s functional currency is the Canadian dollar. White’s income before foreign exchange gains is $30,000, and the exchange gains from translating White’s separate-entity financial statements to Canadian dollars are $50,000. (Leave no cells blank, be sure to enter “0” wherever required.Input all amounts as positive. Round your answers to nearest whole dollar.)
C$(i)Building—net (ii)Goodwill (iii)Depreciation expense—building (iv)Net income (excluding other comprehensive income) (v)Other comprehensive income (vi)Non-controlling interest on the income statement (vii)Non-controlling interest on the balance sheet
(b) Compute the balances that would appear in the Year 6 consolidated financial statements for the same accounts as in Part (a), assuming that White’s functional currency is the foreign peso.(Leave no cells blank, be sure to enter “0” wherever required.Input all amounts as positive. Round your answers to nearest whole dollar.)
C$ i)Building—net (ii)Goodwill (iii)Depreciation expense—building (iv)Net income (excluding other comprehensive income) (v)Other comprehensive income (vi)Non-controlling interest on the income statement (vii)Non-controlling interest on the balance sheet
