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 peso is the functional currency, determine the following amounts:
(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:
(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 peso is the functional currency, determine the following amounts:
(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:
(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 peso is the functional currency, determine the following amounts:
(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:
(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