Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2021, george co., a u.s. corporation

On January 1, 2021, George Co., a U.S. corporation with the U.S. dollar as its...

50.1K

Verified Solution

Question

Accounting

On January 1, 2021, George Co., a U.S. corporation with the U.S. dollar as its functional currency, established Fedrick Co. as a subsidiary. Fedrick is located in Special Country, and its functional currency is the LCU. Fedrick is engaged in the following transactions during 2021:

January 1, 2021

Issued common stock for 500,000 LCU

July 25, 2021

Sold a patent at a gain of 50,000 LCU

October 1, 2021

Paid dividends of 60,000 LCU

Fedrick Co.s operating revenues and expenses for 2021 were 900,000 LCU and 700,000 LCU, respectively. The appropriate exchange rates were:

January 1, 2021: 1 LCU = $2.45

July 25, 2021: 1 LCU = $2.15

October 1, 2021: 1 LCU = $2.54

December 31, 2021: 1 LCU = $2.65

Average for 2021: 1 LCU = $2.41

Required:

Calculate the translation adjustment for Fedrick Co. (Round your answers to the nearest whole dollar.)

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!
Become a Member

Other questions asked by students

Biology
1.2K views

PLEASE ANSWER ALL PARTS FULLY! How did the Meselson & Stahl’s experiment allow the investigators to distinguish...

Chemistry
1.2K views

Determine the pH of an HF solution of each of the following concentrations. In which cases...

Physics
1.2K views

examples of an insulator, a conductor, a semiconductor are respectively?

General Management
1.2K views

Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete...

Physics
1.2K views

An A C voltage of r m s value 0 1 V is applied to...

Basic Math
1.2K views

All ravens fly Choose the correct answer below OA No ravens fly B Some ravens...

Basic Math
1.2K views

Consider f(u) = - 10(u - 9) + 10(u - 9)^4+ 13 on [8, 10].Determine...

Basic Math
1.2K views

Nico's Nuts buys a blend of peanuts and cashews from 2 vendors, with 65% coming...

Statistics
1.2K views

Migraine and Acupuncture A migraine is a particularly painful type of headache which patients sometimes...

Accounting
1.2K views

The owner of Smokies Cigar Company dies, causing it to close down. Which of the...

Accounting
1.2K views

I need help with the following tables H, I, J below: [The following information applies...

Finance
1.2K views

Nesmith Corporation's outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 8 years...