Question

In: Accounting

Hylie, a U.S. corporation, owns 100% of Frosan, a French firm. Assume that the dollar is...

Hylie, a U.S. corporation, owns 100% of Frosan, a French firm. Assume that the dollar is the functional currency, although the books are kept in euros.

Required: What currency exchange rate would be used to re-measure Frosan's balance sheet into U.S. dollars? Choose from current, simple average, weighted average, or historical.

a. Cash _____________________

b. Accounts Receivable _____________________

c. Inventory, carried at cost _____________________

d. Equipment _____________________

e. Accumulated Depreciation _____________________

f. Bonds Payable _____________________

g. Common Stock _____________________

h. Sales _____________________

Expert Solution

Answer

a. Cash -current

b. Accounts Receivable -current

c. Inventory, carried at cost -current

d. Equipment -historical

e. Accumulated Depreciation -historical

f. Bonds Payable -current

g. Common Stock -historical

h. Sales -weighted average

ekkarill92 answered 1 year ago

Paton Corporation, a U.S. corporation, owns 100 percent of the stock of Tappan Ltd, a British...

Paton Corporation, a U.S. corporation, owns 100 percent of the stock of Tappan Ltd, a British corporation, and 100 percent of the stock of Monroe N.V., a Dutch corporation. Monroe has post-1986 undistributed earnings of €726 and post-1986 foreign income taxes of $484. Tappan has post-1986 undistributed earnings of £968 and post-1986 foreign income taxes of $242. During the current year, Tappan paid Paton a dividend of £520, and Monroe paid Paton a dividend of €520. The dividends were exempt...

D’Jais Corporation, a U.S. company, owns 100% of Bar A Corporation, a New Zealand company. Bar...

D’Jais Corporation, a U.S. company, owns 100% of Bar A Corporation, a New Zealand company. Bar A's equipment was acquired on the following dates (amounts are stated in New Zealand dollars): Jan. 1, 2017 purchased equipment for 40,000 NZ dollars Jul. 1, 2017 purchased equipment for 80,000 NZ dollars Jan. 1, 2018 purchased equipment for 50,000 NZ dollars Jul. 1, 2018 sold equipment purchased on Jan. 1, 2017 for 35,000 NZ dollars Exchange rates for the NZ dollar on various...

Assume that you have a firm that owns land that is currently valued at $100 million...

Assume that you have a firm that owns land that is currently valued at $100 million and that the firm has $80 million of zero-coupon debt outstanding. The debt will mature in 1 year. In 1 year, the value of the land will either be $200 million or $50 million. The probability of the value of land increasing is 36.67%. The risk-free rate is 5%. The firm has 2 million shares outstanding. What is the price of 1 share for...

Rodger owns 100% of the shares in Trevor Inc., a C corporation. Assume the following for...

Rodger owns 100% of the shares in Trevor Inc., a C corporation. Assume the following for the current year: Trevor Inc.’s pre-tax income = $25,500 Percentage of after-tax earnings retained by Trevor Inc. = 0% (i.e. all after-tax earnings distributed) Rodger’s dividend tax rate = 15% Given these assumptions, how much cash does Rodger have from the dividend after all taxes have been paid? (Round your intermediate calculations and final answer to whole number dollar amount.)

Assume that Brown Company owns 100% of Schroeder Corporation. Schroeder reports Stockholders’ Equity of $500,000. The...

Assume that Brown Company owns 100% of Schroeder Corporation. Schroeder reports Stockholders’ Equity of $500,000. The Equity investment was acquired at book value (i.e., no AAP). Schroeder sells a 10% interest to outsiders for $115,000. The entry made by Brown as a result of the sale of stock by Schroeder includes:

1. (a) Assume that the exchange rate between the U.S. dollar ($) and the Mexican peso...

1. (a) Assume that the exchange rate between the U.S. dollar ($) and the Mexican peso (P) is pegged at ER=$1/P4. Assume that, initially, this exchange rate corresponds to equilibrium in the foreign exchange market. Illustrate the initial situation in the market for peso-denominated deposits using demand and supply curves. (b) The United States now undertakes an economic policy that puts upward pressure on the interest rate on dollar-denominated deposits (i). Mexico follows an economic policy that puts downward pressure...

Delta corporation owns 2% of the stock in a U.S. corporation Azul. It receives a dividend...

Delta corporation owns 2% of the stock in a U.S. corporation Azul. It receives a dividend from that corporation of $100,000. Delta has $3 million of taxable income not including the dividend from Azul. a) Suppose that before the dividends Delta had a taxable loss from all other activities of ($40,000). How much gross income from the dividend does Delta report? b)What if Delta’s taxable loss before dividends was ($55,000) would your answer change and if so how?

4. Todor owns a U.S. corporation that operates a subsidiary corporation in Bulgaria. Because of the...

4. Todor owns a U.S. corporation that operates a subsidiary corporation in Bulgaria. Because of the world wide tax approach adopted in the United States, all income of the Bulgarian subsidiary is potentially taxed twice, once in Bulgaria and again in the United States. Name and provide a brief description of the adjustments available on the U.S. return of the parent corporation which mitigate the impact of this potential double tax on all Bulgarian income?

LN Corporation, a U.S corporation, owns all the stock of Foreign Sub 1, a foreign corporation....

LN Corporation, a U.S corporation, owns all the stock of Foreign Sub 1, a foreign corporation. Foreign Sub 1 in turn owns 20% of the voting stock of Foreign Sub 2, also a foreign corporation. LN Corporation also owns 10% of the nonvoting common stock of Foreign Sub 2 but owns no voting stock in Foreign Sub 2. During the current year, Foreign Sub 2 pays dividends on its nonvoting common stock, but pays no dividends on its voting stock....

Green Corporation owns 100% of the stock of Yellow Corporation (all common) with a basis of...

Green Corporation owns 100% of the stock of Yellow Corporation (all common) with a basis of $100. Yellow Corporation owns a rental building (its only asset) with a gross FMV of $1,000, subject to a nonrecourse mortgage of $400. Yellow’s adjusted basis in this building is $300. Yellow has $200 of E&P. Yellow is on the accrual method of accounting and reports on the calendar year. Yellow Corporation and Green Corporation do not report on a consolidated basis. Yellow Corporation...