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trial balance, translated into U.S. dollars, contained $1 d income of 93400 pounds for 2019 and paid a cash div adjusted equity method of accounting for its investme January 1 1f = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 e for the year 1£ = 1.23

trial balance, translated into U.S. dollars, contained $1 d income of 93400 pounds for 2019 and paid a cash div adjusted equity method of accounting for its investme January 1 1f = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 e for the year 1£ = 1.23

FINANCIAL ACCOUNTING
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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Leo Corporation acquired 100 percent of the common stock of a British company on January 1, 2019, for $137800. Leo determined that the Great Britain Pound was the functional currency. On December 31, 2019, the British subsidiary's adjusted trial balance, translated into U.S. dollars, contained $19500 more debits than credits. The British subsidiary reported income of 93400 pounds for 2019 and paid a cash dividend of 32500 pounds on October 25, 2019. Leo uses the fully adjusted equity method of accounting for its investment. Exchange rates at various dates during 2019 follow: January 1 1£ = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 Average for the year 1f = 1.23 Based on the preceding information, the receipt of the dividend will result in a credit to the investment account in the amount of: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
Transcribed Image Text:Leo Corporation acquired 100 percent of the common stock of a British company on January 1, 2019, for $137800. Leo determined that the Great Britain Pound was the functional currency. On December 31, 2019, the British subsidiary's adjusted trial balance, translated into U.S. dollars, contained $19500 more debits than credits. The British subsidiary reported income of 93400 pounds for 2019 and paid a cash dividend of 32500 pounds on October 25, 2019. Leo uses the fully adjusted equity method of accounting for its investment. Exchange rates at various dates during 2019 follow: January 1 1£ = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 Average for the year 1f = 1.23 Based on the preceding information, the receipt of the dividend will result in a credit to the investment account in the amount of: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
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