accounts data bank

Question # 00003735 Posted By: spqr Updated on: 11/19/2013 05:36 AM Due on: 11/30/2013
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33. Seattle, Inc. owns an 80 percent interest in a Portuguese subsidiary. For 2008, Seattle reported income from operations of $2.0 million. The Portuguese company's income from operations, after foreign currency translation, was $1.1 million. The foreign currency translation adjustment was $120,000 (credit). Consolidated net income and consolidated comprehensive income for the year are:

A. Option A
B. Option B
C. Option C
D. Option D















34. Refer to the above information. Assuming the local currency of the country in which Perth Company is located is the functional currency, what are the translated amounts for the items below in U.S. dollars?

A. Option A
B. Option B
C. Option C
D. Option D

35. Refer to the above information. Assuming Perth's local currency is the functional currency, what is the amount of translation adjustments that result from translating Perth's trial balance into U.S. dollars at December 31, 2008?
A. $396,500 debit
B. $285,000 credit
C. $405,000 credit
D. $411,000 credit

36. Refer to the above information. Assuming Perth's local currency is the functional currency, what is the amount of patent amortization for 2008 that results from Johnson's acquisition of Perth's stock on January 2, 2008. Round your answer to the nearest dollar.
A. $11,500
B. $11,884
C. $7,667
D. $9,394


37. Refer to the above information. Assuming Perth's local currency is the functional currency, what is the amount of translation adjustment that appears on Johnson's consolidated financial statements at December 31, 2008?
A. $419,184 credit
B. $416,884 credit
C. $405,884 debit
D. $398,500 credit

38. Refer to the above information. Assuming Perth's local currency is the functional currency, what is the balance in Johnson's investment in foreign subsidiary account at December 31, 2008, assuming use of the equity method?
A. $3,216,500
B. $3,560,000
C. $3,568,300
D. $3,577,694

39. Refer to the above information. Assuming the U.S. dollar is the functional currency, what is Johnson's remeasurement gain (loss) for 2008? (Assume the ending inventory was acquired on December 31, 2008.)
A. $31,000 gain
B. $36,500 loss
C. $22,000 gain
D. $32,000 gain

40. Refer to the above information. Assuming the U.S. dollar is the functional currency, what is the amount of Perth's cost of goods sold remeasured in U.S. dollars?
A. $811,500
B. $843,500
C. $884,500
D. $799,500


41. Refer to the above information. Assuming the U.S. dollar is the functional currency, what is the amount of patent amortization for 2008 that results from Johnson's acquisition of Perth's stock on January 2, 2008?
A. $11,884
B. $11,770
C. $12,550
D. $11,500

42. Refer to the above information. Assuming the U.S. dollar is the functional currency, what is Perth's net income for 2008 in U.S. dollars (include the remeasurement gain or loss in Perth's net income)?
A. $238,000
B. $228,000
C. $219,500
D. $202,000

43. Refer to the above information. Assuming the U.S. dollar is the functional currency, what is the balance in Johnson's investment in foreign subsidiary account at December 31, 2008 (assuming the use of the equity method)?
A. $3,303,400
B. $3,294,500
C. $3,323,400
D. $3,314,500


44. Based on the preceding information, in the journal entry to record the receipt of dividend from Steamship,
A. Investment in Steamship Company will be credited for $3,450.
B. Cash will be debited for $3,300.
C. Investment in Steamship Company will be credited for $4,000.
D. Cash will be debited for $3,600.

45. Based on the preceding information, in the journal entry to record parent's share of subsidiary's translation adjustment:
A. Other Comprehensive Income — Translation Adjustment will be debited for $8,000.
B. Other Comprehensive Income — Translation Adjustment will be credited for $6,000.
C. Investment in Steamship Company will be credited for $6,000.
D. Investment in Steamship Company will be debited for $8,000.


46. Based on the preceding information, what amount of translation adjustment is required for increase in differential?
A. $3,000
B. $5,500
C. $4,500
D. $5,000

47. Based on the preceding information, in the journal entry to record the amortization of the patent for 2008 on the parent's books, Investment in Steamship Company will be debited for:
A. $5,000
B. $5,500
C. $4,500
D. $3,000

48. Based on the preceding information, at what dollar amount is the ending inventory shown in the trial balance of the consolidated workpaper?
A. $45,000
B. $50,000
C. $40,000
D. $35,000


49. Based on the preceding information, what amount of unrealized intercompany gross profit is eliminated in preparing the consolidated financial statements for the year?
A. $0
B. $5,000
C. $10,000
D. $15,000

50. Based on the preceding information, at what amount is the inventory shown on the consolidated balance sheet for the year?
A. $45,000
B. $30,000
C. $40,000
D. $35,000

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  1. Tutorial # 00003545 Posted By: spqr Posted on: 11/19/2013 06:17 AM
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