accounts data bank

accounts data bank

Question
	
33. Seattle, Inc. owns an 80 percent interest in a
Portuguese subsidiary. For 2008, Seattle reported income from operations of
$2.0 million. The Portuguese company's income from operations, after foreign
currency translation, was $1.1 million. The foreign currency translation
adjustment was $120,000 (credit). Consolidated net income and consolidated
comprehensive income for the year are:

 accounts   data bank 

A. Option A

B. Option B

C. Option C

D. Option D



 















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34. Refer to the above information. Assuming the local
currency of the country in which Perth Company is located is the functional
currency, what are the translated amounts for the items below in U.S. dollars?

 accounts   data bank 

A. Option A

B. Option B

C. Option C

D. Option D



 



35. Refer to the above information. Assuming Perth's
local currency is the functional currency, what is the amount of translation
adjustments that result from translating Perth's trial balance into U.S.
dollars at December 31, 2008? 

A. $396,500 debit

B. $285,000 credit

C. $405,000 credit

D. $411,000 credit



 



36. Refer to the above information. Assuming Perth's
local currency is the functional currency, what is the amount of patent
amortization for 2008 that results from Johnson's acquisition of Perth's stock
on January 2, 2008. Round your answer to the nearest dollar. 

A. $11,500

B. $11,884

C. $7,667

D. $9,394



 







37. Refer to the above information. Assuming Perth's
local currency is the functional currency, what is the amount of translation
adjustment that appears on Johnson's consolidated financial statements at
December 31, 2008? 

A. $419,184 credit

B. $416,884 credit

C. $405,884 debit

D. $398,500 credit



 



38. Refer to the above information. Assuming Perth's
local currency is the functional currency, what is the balance in Johnson's
investment in foreign subsidiary account at December 31, 2008, assuming use of
the equity method? 

A. $3,216,500

B. $3,560,000

C. $3,568,300

D. $3,577,694



 



39. Refer to the above information. Assuming the U.S.
dollar is the functional currency, what is Johnson's remeasurement gain (loss)
for 2008? (Assume the ending inventory was acquired on December 31,
2008.) 

A. $31,000 gain

B. $36,500 loss

C. $22,000 gain

D. $32,000 gain



 



40. Refer to the above information. Assuming the U.S.
dollar is the functional currency, what is the amount of Perth's cost of goods
sold remeasured in U.S. dollars? 

A. $811,500

B. $843,500

C. $884,500

D. $799,500



 







41. Refer to the above information. Assuming the U.S.
dollar is the functional currency, what is the amount of patent amortization
for 2008 that results from Johnson's acquisition of Perth's stock on January 2,
2008? 

A. $11,884

B. $11,770

C. $12,550

D. $11,500



 



42. Refer to the above information. Assuming the U.S.
dollar is the functional currency, what is Perth's net income for 2008 in U.S.
dollars (include the remeasurement gain or loss in Perth's net income)? 

A. $238,000

B. $228,000

C. $219,500

D. $202,000



 



43. Refer to the above information. Assuming the U.S.
dollar is the functional currency, what is the balance in Johnson's investment
in foreign subsidiary account at December 31, 2008 (assuming the use of the
equity method)? 

A. $3,303,400

B. $3,294,500

C. $3,323,400

D. $3,314,500



 







 



 



44. Based on the preceding information, in the journal
entry to record the receipt of dividend from Steamship, 

A. Investment in Steamship Company will be credited for $3,450.

B. Cash will be debited for $3,300.

C. Investment in Steamship Company will be credited for $4,000.

D. Cash will be debited for $3,600.



 



45. Based on the preceding information, in the journal
entry to record parent's share of subsidiary's translation adjustment: 

A. Other Comprehensive Income — Translation Adjustment will be debited for
$8,000.

B. Other Comprehensive Income — Translation Adjustment will be credited
for $6,000.

C. Investment in Steamship Company will be credited for $6,000.

D. Investment in Steamship Company will be debited for $8,000.



 







46. Based on the preceding information, what amount of
translation adjustment is required for increase in differential? 

A. $3,000

B. $5,500

C. $4,500

D. $5,000



 



47. Based on the preceding information, in the journal
entry to record the amortization of the patent for 2008 on the parent's books,
Investment in Steamship Company will be debited for: 

A. $5,000

B. $5,500

C. $4,500

D. $3,000



 



 



 



48. Based on the preceding information, at what dollar
amount is the ending inventory shown in the trial balance of the consolidated
workpaper? 

A. $45,000

B. $50,000

C. $40,000

D. $35,000



 







49. Based on the preceding information, what amount of
unrealized intercompany gross profit is eliminated in preparing the
consolidated financial statements for the year? 

A. $0

B. $5,000

C. $10,000

D. $15,000



 



50. Based on the preceding information, at what amount
is the inventory shown on the consolidated balance sheet for the year? 

A. $45,000

B. $30,000

C. $40,000

D. $35,000