On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski 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,Ski's balance sheet contained the following information:
Ski's income statement for 20X8 is as follows:
The balance sheet of Ski at December 31,20X8,is as follows:
Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow:
Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8.
-Refer to the above information.Assuming the U.S.dollar is the functional currency,what is Polaris's remeasurement gain (loss)for 20X8? (Assume the ending inventory was acquired on December 31,20X8. )
A)$31,000 gain
B)$36,500 loss
C)$22,000 gain
D)$32,000 gain

Question

On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski 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,Ski's balance sheet contained the following information:
  Ski's income statement for 20X8 is as follows:
  The balance sheet of Ski at December 31,20X8,is as follows:
  Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow:
  Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8.
-Refer to the above information.Assuming the U.S.dollar is the functional currency,what is Polaris's remeasurement gain (loss)for 20X8? (Assume the ending inventory was acquired on December 31,20X8. )
A)$31,000 gain 
B)$36,500 loss 
C)$22,000 gain 
D)$32,000 gain

Quizplus · Accepted Answer

The Answer of On January 2,20X8,Polaris Company acquired a 100% interest in the capital stock of Ski 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,Ski's balance sheet contained the following information:
  Ski's income statement for 20X8 is as follows:
  The balance sheet of Ski at December 31,20X8,is as follows:
  Ski declared and paid a dividend of 20,000 FCU on October 1,20X8.Spot rates at various dates for 20X8 follow:
  Assume Ski's revenues,purchases,operating expenses,depreciation expense,and income taxes were incurred evenly throughout 20X8.
-Refer to the above information.Assuming the U.S.dollar is the functional currency,what is Polaris's remeasurement gain (loss)for 20X8? (Assume the ending inventory was acquired on December 31,20X8. )
A)$31,000 gain 
B)$36,500 loss 
C)$22,000 gain 
D)$32,000 gain

On January 2,20X8,Polaris Company Acquired a 100% Interest in the Capital