90.2K

Verified Solution

Link Copied!

please i need help with the queation A y B

thank you

Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2020 with three assets: cash of 29.800 dinars. accounts receivable of 82,300 dinars, and land that cost 223,000 dinars when acquired on Apeil 1, 2019. On Januaty 1, 2020, Zugar has a 173,000 dinar note payable, and no other liabilities. On May 1,2020, Zugar renders services to a customer for 143,000 dinars, which wos immediately paid in cash, On June 1,2020, Zugar incurred a 123,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year Currency exchange rates for 1 dinar follow: a. Assume that Zugar is a foreign subsidiary of a US multinational company that uses the U.S dollar as its reporting curtency Assume also that the dinar is the subsidiary's functional curfency. What is the translation adjustment for this subsidiary for the year 2020 ? b. Assume that Zugar is a foreign subsidiary of a US multinational company that uses the US dollar as its reporting currency Assume also that the US dollar is the subsidiary's functional currency What is the remeasurement gain or loss for 2020 ? c. Assume that Zugar is a foreign subsidiary of a U.S. multinational company. On the December 31, 2020, balance sheet, what is the translated value of the Land account? On the December 31,2020 , balance sheet, what is the remeasured value of the Land account? (Input all amounts as positive.) Zugar Company is domiciled in a country whose currency is the dinar Zugar begins 2020 with three assets: cash of 29.800 dinars, accounts receivable of 82,300 dinars, and land that cost 223,000 dinars when acquired on April 1, 2019. On January 1, 2020. Zugar has a 173,000 dinar note payable, and no other liabilities. On May 1,2020, Zugar renders services to a customer for 143,000 dinars. which was immediately paid in cash. On June 1, 2020, Zugar incurred a 123,000 dinar operating expense, which was immediately pald in cash. No other transactions occurred during the year. Currency exchange rates for 1 dinat follow. a. Assume that Zugar is a foreign subsidiary of a U.S multinational company that uses the US dollar as its reporting currency. Assume also that the dinar is the subsidiary's functional currency What is the transiation adjustment for this subsidiary for the year 2020 ? b. Assume that Zugar is a foreign subsidiary of a US multinational company that uses the US dollar as its reporting currency. Assume also that the US dollar is the subsidiary's functional currency What is the remeasurement gain or loss for 2020 ? c. Assume that Zugar is a foreign subsidiary of a US, multinational company On the December 31,2020 , balance sheet, what is the translated value of the Land account? On the December 31,2020, balance sheet, what is the remeasured value of the Land account? (Input all amounts as positive.)

Answer & Explanation Solved by verified expert

See Answer