Following are certain items (accounts or account totals) that have been translated/remeasured (as appropriate) into U.S. dollars at or for the year ending 12/31/06:
Required:
a. Assuming that the pound is the functional currency, determine the following amounts (ignoring tax effects):
(1) Total Ending Retained Earnings at 12/31/06.
(2) Current period effect of the change in the exchange rate. (Use parentheses to indicate if unfavorable.)
b. Assuming that the U.S. dollar is the functional currency, determine the following amounts (ignoring tax effects):
(1) Total Ending Retained Earnings at 12/31/06.
(2) Current period effect of the change in the exchange rate. (Use parentheses to indicate if unfavorable.)

Question

Following are certain items (accounts or account totals) that have been translated/remeasured (as appropriate) into U.S. dollars at or for the year ending 12/31/06:
  Required:
a. Assuming that the pound is the functional currency, determine the following amounts (ignoring tax effects):
(1) Total Ending Retained Earnings at 12/31/06.
(2) Current period effect of the change in the exchange rate. (Use parentheses to indicate if unfavorable.)
b. Assuming that the U.S. dollar is the functional currency, determine the following amounts (ignoring tax effects):
(1) Total Ending Retained Earnings at 12/31/06.
(2) Current period effect of the change in the exchange rate. (Use parentheses to indicate if unfavorable.)

Quizplus · Accepted Answer

The Answer of Following are certain items (accounts or account totals) that have been translated/remeasured (as appropriate) into U.S. dollars at or for the year ending 12/31/06:
  Required:
a. Assuming that the pound is the functional currency, determine the following amounts (ignoring tax effects):
(1) Total Ending Retained Earnings at 12/31/06.
(2) Current period effect of the change in the exchange rate. (Use parentheses to indicate if unfavorable.)
b. Assuming that the U.S. dollar is the functional currency, determine the following amounts (ignoring tax effects):
(1) Total Ending Retained Earnings at 12/31/06.
(2) Current period effect of the change in the exchange rate. (Use parentheses to indicate if unfavorable.)

Following Are Certain Items (Accounts or Account Totals) That Have