Solved

On January 2,2008,Johnson Company Acquired a 100% Interest in the Capital

Question 30

Multiple Choice

On January 2,2008,Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Perth's balance sheet contained the following information:
Perth's income statement for 2008 is as follows:
On January 2,2008,Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Perth's balance sheet contained the following information: Perth's income statement for 2008 is as follows: The balance sheet of Perth at December 31,2008,is as follows: Perth declared and paid a dividend of 20,000 FCU on October 1,2008.Spot rates at various dates for 2008 follow: Assume Perth's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 2008. -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 On January 2,2008,Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Perth's balance sheet contained the following information: Perth's income statement for 2008 is as follows: The balance sheet of Perth at December 31,2008,is as follows: Perth declared and paid a dividend of 20,000 FCU on October 1,2008.Spot rates at various dates for 2008 follow: Assume Perth's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 2008. -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 The balance sheet of Perth at December 31,2008,is as follows:
Perth declared and paid a dividend of 20,000 FCU on October 1,2008.Spot rates at various dates for 2008 follow:
Assume Perth's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 2008.
On January 2,2008,Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Perth's balance sheet contained the following information: Perth's income statement for 2008 is as follows: The balance sheet of Perth at December 31,2008,is as follows: Perth declared and paid a dividend of 20,000 FCU on October 1,2008.Spot rates at various dates for 2008 follow: Assume Perth's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 2008. -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 On January 2,2008,Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000.Any excess cost over book value is attributable to a patent with a 10-year remaining life.At the date of acquisition,Perth's balance sheet contained the following information: Perth's income statement for 2008 is as follows: The balance sheet of Perth at December 31,2008,is as follows: Perth declared and paid a dividend of 20,000 FCU on October 1,2008.Spot rates at various dates for 2008 follow: Assume Perth's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 2008. -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
-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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q22: For each of the items listed below,state

Q25: Seattle,Inc.owns an 80 percent interest in a

Q27: Dover Company owns 90% of the capital

Q28: On January 2,2008,Johnson Company acquired a 100%

Q28: The British subsidiary of a U.S.company reported

Q32: Based on the preceding information,the translation of

Q33: On January 2,2008,Johnson Company acquired a 100%

Q44: Nichols Company owns 90% of the capital

Q46: The British subsidiary of a U.S.company reported

Q47: On January 2,20X8,Johnson Company acquired a 100%

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents