advanced accounting 405:    A U.S. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,900 to the subsidiary on account for $29.100 when theexchange rate was $0.5192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $04994.   Compute the amounts that would be reported for the inventory and accounts payable in the subsidiary’'s translated balance sheet. The entity’s functional currency is the Martian Credit. (Round answers to O decimal places, e.g. 5,125.) Inventory $  Accounts Payable $

Question 10 Dover Company owns 90% of the capital stock of a foreign subsidiary located in Italy. Dover's accountant has just translated the accounts of the foreign subsidiary and determined that a debit translation adjustment of $80,000 exists. If Dover uses the fully adjusted equity method for its investment, what entry should Dover record in order to recognize the translation adjustment?     Debit-Investment in Italian Subsidiary 72,000   Credit-Other Comprehensive Income—Translation Adjustment   72,000     Debit-Other Comprehensive Income—Translation Adjustment 80,000   Credit-Investment in Italian Subsidiary   80,000     Debit-Other Comprehensive Income—Translation Adjustment 72,000   Credit-Investment in Italian Subsidiary   72,000     No entry required

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Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]):     Cash NGN 16,240   Notes payable NGN 20,180 Inventory   10,900   Common stock   21,000 Land   4,090   Retained earnings   10,500 Building   40,900         Accumulated depreciation   (20,450 )         NGN 51,680     NGN 51,680     The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place:   2020     Feb. 1   Paid 8,090,000 NGN on the note payable. May 1   Sold entire inventory for 16,900,000 NGN on account. June 1   Sold land for 6,090,000 NGN cash. Aug. 1   Collected all accounts receivable. Sept. 1   Signed long-term note to receive 8,090,000 NGN cash. Oct. 1   Bought inventory for 20,090,000 NGN cash. Nov. 1…