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 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

Question

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 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

Quizplus · Accepted Answer

The Answer of 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 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

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