Tristan Narvaja, S.A. (C). Calculate Tristan Narvaja’s contribution to its parent’s translation gain or loss using the current rate method if the exchange rate on December 31 is $U12 = $1.00. Assume all peso accounts remain as they were at the beginning of the year. Balance Sheet (thousands of pesos Uruguayo, $U)AssetsCashAccounts receivableInventoryNet plant andequipment$U 60,000120,000120,000240,000$U540,000Liabilities & Net WorthCurrent liabilitiesLong-term debtCapital stockRetainedearnings$U 30,00090,000300,000120,000$U540,000

Consolidated economic statements are the general-reason economic statements of a discern organisation that has one or greater subsidiaries. In sure circumstances, discern organisation-most effective economic statements might also additionally be required further to consolidated economic statements. The existence of desired stockholders, mortgage or different agreements, or different special necessities (e.g., reporting necessities for not-for-income entities including healthcare carriers. In this question, it is required to calculate the contribution to the parent company by using the current rate method. The data is given in Uruguayan dollars and the rate is one US dollar is equal to 12U$. First of all, we calculate the contribution. The contribution is calculated by subtracting the current liabilities and long-term debt from the assets. Calculation of contribution: Contribution=Total Assets-(Current Liabilties+Long Term Debt)=540,000-120,000=420,000 Now, this contribution is converted into US dollars: Contribution is US Dollars=ContributionExchange Rate=420,00012=35,000 Conclusion: Hence, the contribution is 35,000.

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Calculate Tristan Narvaja’s contribution to its parent’s translation gain or loss using the current rate method if the exchange rate on December 31 is $U12 = $1.00. Assume all peso accounts remain as they were at the beginning of the year

Calculate Tristan Narvaja’s contribution to its parent’s translation gain or loss using the current rate method if the exchange rate on December 31 is $U12 = $1.00. Assume all peso accounts remain as they were at the beginning of the year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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