Massmart, the second largest retailer in Africa, is a subsidiary of Wal-Mart Inc., a U.S....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Massmart, the second largest retailer in Africa, is a subsidiary of Wal-Mart Inc., a U.S. company. Massmart reports its accounts in its local currency, the rand (R). Wal-Marts fiscal year ends January 31. On February 1, 2018, Massmart reports facilities with original cost of R500 million and accumulated depreciation of R280 million in its noncurrent assets, as follows:
Buildings acquired at a cost of R175 million when the exchange rate was $0.15/R, with accumulated depreciation of R100 million. The buildings are being depreciated on a straight-line basis over 25 years.
Equipment acquired at a cost of R325 million when the exchange rate was $0.12/R, with accumulated depreciation of R180 million. The equipment is being depreciated on a straight-line basis over 10 years.
Additional exchange rates:
February 1, 2018
$0.10
Average for fiscal 2019
0.08
January 31, 2019
0.07
Massmart still holds these facilities at January 31, 2019.
Required
a. Assume that Massmarts functional currency is the rand. Calculate Massmarts translated facilities, at cost, and related accumulated depreciation, at January 31, 2019, and its translated depreciation expense for fiscal 2019.
b. Now assume that Massmarts functional currency is the U.S. dollar. Calculate Massmarts remeasured facilities, at cost, and related accumulated depreciation, at January 31, 2019, and its remeasured depreciation expense for fiscal 2019.
Enter answers using all zeros (do not abbreviate to millions or thousands).
I am able to figure the facilities at cost but having problems with the rest
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!