P bought 50 shares of HHH stock in 2014 for $3,000.
In 2016 P bought 100 shares of HHH stock for $5,000
In 2018 P bought 200 shares of HHH stock for $9,000
In 2019 P bought 100 shares of HHH stock for $4,500
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,400 | Notes payable | NGN | 20,200 | |
| Inventory | 11,000 | Common stock | 21,200 | |||
| Land | 4,100 | Retained earnings | 10,600 | |||
| Building | 41,000 | |||||
| Accumulated depreciation | (20,500 | ) | ||||
| NGN | 52,000 | NGN | 52,000 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,100,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 17,000,000 NGN on account. |
| June 1 | Sold land for 6,100,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,100,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,100,000 NGN cash. |
| Nov. 1 | Bought land for 3,100,000 NGN on account. |
| Dec. 1 | Declared and paid 3,100,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,050,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0058 |
| 2010 | 1 | = | 0.0052 | |
| August 1, 2016 | 1 | = | 0.0072 | |
| December 31, 2016 | 1 | = | 0.0074 | |
| February 1, 2017 | 1 | = | 0.0076 | |
| May 1, 2017 | 1 | = | 0.0078 | |
| June 1, 2017 | 1 | = | 0.0080 | |
| August 1, 2017 | 1 | = | 0.0084 | |
| September 1, 2017 | 1 | = | 0.0086 | |
| October 1, 2017 | 1 | = | 0.0088 | |
| November 1, 2017 | 1 | = | 0.0090 | |
| December 1, 2017 | 1 | = | 0.0092 | |
| December 31, 2017 | 1 | = | 0.0104 | |
| Average for 2017 | 1 | = | 0.0094 | |
A. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
B. Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
(Input all amounts as positive. Enter amounts in whole dollars.)
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 15,780 | Notes payable | NGN | 20,040 | |
| Inventory | 10,200 | Common stock | 20,040 | |||
| Land | 4,020 | Retained earnings | 10,020 | |||
| Building | 40,200 | |||||
| Accumulated depreciation | (20,100 | ) | ||||
| NGN | 50,100 | NGN | 50,100 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,020,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 16,200,000 NGN on account. |
| June 1 | Sold land for 6,020,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,020,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,020,000 NGN cash. |
| Nov. 1 | Bought land for 3,020,000 NGN on account. |
| Dec. 1 | Declared and paid 3,020,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,010,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0050 |
| 2010 | 1 | = | 0.0044 | |
| August 1, 2016 | 1 | = | 0.0064 | |
| December 31, 2016 | 1 | = | 0.0066 | |
| February 1, 2017 | 1 | = | 0.0068 | |
| May 1, 2017 | 1 | = | 0.0070 | |
| June 1, 2017 | 1 | = | 0.0072 | |
| August 1, 2017 | 1 | = | 0.0076 | |
| September 1, 2017 | 1 | = | 0.0078 | |
| October 1, 2017 | 1 | = | 0.0080 | |
| November 1, 2017 | 1 | = | 0.0082 | |
| December 1, 2017 | 1 | = | 0.0084 | |
| December 31, 2017 | 1 | = | 0.0088 | |
| Average for 2017 | 1 | = | 0.0078 | |
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,400 | Notes payable | NGN | 20,200 | |
| Inventory | 11,000 | Common stock | 21,200 | |||
| Land | 4,100 | Retained earnings | 10,600 | |||
| Building | 41,000 | |||||
| Accumulated depreciation | (20,500 | ) | ||||
| NGN | 52,000 | NGN | 52,000 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,100,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 17,000,000 NGN on account. |
| June 1 | Sold land for 6,100,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,100,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,100,000 NGN cash. |
| Nov. 1 | Bought land for 3,100,000 NGN on account. |
| Dec. 1 | Declared and paid 3,100,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,050,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0058 |
| 2010 | 1 | = | 0.0052 | |
| August 1, 2016 | 1 | = | 0.0072 | |
| December 31, 2016 | 1 | = | 0.0074 | |
| February 1, 2017 | 1 | = | 0.0076 | |
| May 1, 2017 | 1 | = | 0.0078 | |
| June 1, 2017 | 1 | = | 0.0080 | |
| August 1, 2017 | 1 | = | 0.0084 | |
| September 1, 2017 | 1 | = | 0.0086 | |
| October 1, 2017 | 1 | = | 0.0088 | |
| November 1, 2017 | 1 | = | 0.0090 | |
| December 1, 2017 | 1 | = | 0.0092 | |
| December 31, 2017 | 1 | = | 0.0104 | |
| Average for 2017 | 1 | = | 0.0094 | |
A. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
B. Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
(Input all amounts as positive. Enter amounts in whole dollars.)
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,840 | Notes payable | NGN | 20,480 | |
| Inventory | 12,400 | Common stock | 22,800 | |||
| Land | 4,240 | Retained earnings | 11,400 | |||
| Building | 42,400 | |||||
| Accumulated depreciation | (21,200 | ) | ||||
| NGN | 54,680 | NGN | 54,680 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,240,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 18,400,000 NGN on account. |
| June 1 | Sold land for 6,240,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,240,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,240,000 NGN cash. |
| Nov. 1 | Bought land for 3,240,000 NGN on account. |
| Dec. 1 | Declared and paid 3,240,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,120,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0072 |
| 2010 | 1 | = | 0.0066 | |
| August 1, 2016 | 1 | = | 0.0086 | |
| December 31, 2016 | 1 | = | 0.0088 | |
| February 1, 2017 | 1 | = | 0.0090 | |
| May 1, 2017 | 1 | = | 0.0092 | |
| June 1, 2017 | 1 | = | 0.0094 | |
| August 1, 2017 | 1 | = | 0.0098 | |
| September 1, 2017 | 1 | = | 0.0100 | |
| October 1, 2017 | 1 | = | 0.0102 | |
| November 1, 2017 | 1 | = | 0.0104 | |
| December 1, 2017 | 1 | = | 0.0106 | |
| December 31, 2017 | 1 | = | 0.0132 | |
| Average for 2017 | 1 | = | 0.0122 | |
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,820 | Notes payable | NGN | 20,440 | |
| Inventory | 12,200 | Common stock | 22,600 | |||
| Land | 4,220 | Retained earnings | 11,300 | |||
| Building | 42,200 | |||||
| Accumulated depreciation | (21,100 | ) | ||||
| NGN | 54,340 | NGN | 54,340 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,220,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 18,200,000 NGN on account. |
| June 1 | Sold land for 6,220,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,220,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,220,000 NGN cash. |
| Nov. 1 | Bought land for 3,220,000 NGN on account. |
| Dec. 1 | Declared and paid 3,220,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,110,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0070 |
| 2010 | 1 | = | 0.0064 | |
| August 1, 2016 | 1 | = | 0.0084 | |
| December 31, 2016 | 1 | = | 0.0086 | |
| February 1, 2017 | 1 | = | 0.0088 | |
| May 1, 2017 | 1 | = | 0.0090 | |
| June 1, 2017 | 1 | = | 0.0092 | |
| August 1, 2017 | 1 | = | 0.0096 | |
| September 1, 2017 | 1 | = | 0.0098 | |
| October 1, 2017 | 1 | = | 0.0100 | |
| November 1, 2017 | 1 | = | 0.0102 | |
| December 1, 2017 | 1 | = | 0.0104 | |
| December 31, 2017 | 1 | = | 0.0128 | |
| Average for 2017 | 1 | = | 0.0118 | |
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
a.Positivetranslation adjustment: ?
b.Remeasurement gain: ?
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,770 | Notes payable | NGN | 20,340 | |
| Inventory | 11,700 | Common stock | 22,100 | |||
| Land | 4,170 | Retained earnings | 11,050 | |||
| Building | 41,700 | |||||
| Accumulated depreciation | (20,850 | ) | ||||
| NGN | 53,490 | NGN | 53,490 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,170,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 17,700,000 NGN on account. |
| June 1 | Sold land for 6,170,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,170,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,170,000 NGN cash. |
| Nov. 1 | Bought land for 3,170,000 NGN on account. |
| Dec. 1 | Declared and paid 3,170,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,085,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0065 |
| 2010 | 1 | = | 0.0059 | |
| August 1, 2016 | 1 | = | 0.0079 | |
| December 31, 2016 | 1 | = | 0.0081 | |
| February 1, 2017 | 1 | = | 0.0083 | |
| May 1, 2017 | 1 | = | 0.0085 | |
| June 1, 2017 | 1 | = | 0.0087 | |
| August 1, 2017 | 1 | = | 0.0091 | |
| September 1, 2017 | 1 | = | 0.0093 | |
| October 1, 2017 | 1 | = | 0.0095 | |
| November 1, 2017 | 1 | = | 0.0097 | |
| December 1, 2017 | 1 | = | 0.0099 | |
| December 31, 2017 | 1 | = | 0.0118 | |
| Average for 2017 | 1 | = | 0.0108 | |
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
(Input all amounts as positive. Enter amounts in whole dollars.)
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 15,450 | Notes payable | NGN | 20,100 | |
| Inventory | 10,500 | Common stock | 20,100 | |||
| Land | 4,050 | Retained earnings | 10,050 | |||
| Building | 40,500 | |||||
| Accumulated depreciation | (20,250) | |||||
| NGN | 50,250 | NGN | 50,250 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,050,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 16,500,000 NGN on account. |
| June 1 | Sold land for 6,050,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,050,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,050,000 NGN cash. |
| Nov. 1 | Bought land for 3,050,000 NGN on account. |
| Dec. 1 | Declared and paid 3,050,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,025,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0053 |
| 2010 | 1 | = | 0.0047 | |
| August 1, 2016 | 1 | = | 0.0067 | |
| December 31, 2016 | 1 | = | 0.0069 | |
| February 1, 2017 | 1 | = | 0.0071 | |
| May 1, 2017 | 1 | = | 0.0073 | |
| June 1, 2017 | 1 | = | 0.0075 | |
| August 1, 2017 | 1 | = | 0.0079 | |
| September 1, 2017 | 1 | = | 0.0081 | |
| October 1, 2017 | 1 | = | 0.0083 | |
| November 1, 2017 | 1 | = | 0.0085 | |
| December 1, 2017 | 1 | = | 0.0087 | |
| December 31, 2017 | 1 | = | 0.0094 | |
| Average for 2017 | 1 | = | 0.0084 | |
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
(Input all amounts as positive. Enter amounts in whole dollars.)
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,740 | Notes payable | NGN | 20,280 | |
| Inventory | 11,400 | Common stock | 21,800 | |||
| Land | 4,140 | Retained earnings | 10,900 | |||
| Building | 41,400 | |||||
| Accumulated depreciation | (20,700 | ) | ||||
| NGN | 52,980 | NGN | 52,980 | |||
|
|
||||||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,140,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 17,400,000 NGN on account. |
| June 1 | Sold land for 6,140,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,140,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,140,000 NGN cash. |
| Nov. 1 | Bought land for 3,140,000 NGN on account. |
| Dec. 1 | Declared and paid 3,140,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,070,000 NGN. |
|
|
|
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0062 |
| 2010 | 1 | = | 0.0056 | |
| August 1, 2016 | 1 | = | 0.0076 | |
| December 31, 2016 | 1 | = | 0.0078 | |
| February 1, 2017 | 1 | = | 0.0080 | |
| May 1, 2017 | 1 | = | 0.0082 | |
| June 1, 2017 | 1 | = | 0.0084 | |
| August 1, 2017 | 1 | = | 0.0088 | |
| September 1, 2017 | 1 | = | 0.0090 | |
| October 1, 2017 | 1 | = | 0.0092 | |
| November 1, 2017 | 1 | = | 0.0094 | |
| December 1, 2017 | 1 | = | 0.0096 | |
| December 31, 2017 | 1 | = | 0.0112 | |
| Average for 2017 | 1 | = | 0.0102 | |
|
|
||||
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
In: Accounting
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)):
| Cash | NGN | 16,240 | Notes payable | NGN | 20,180 | |
| Inventory | 10,900 | Common stock | 21,000 | |||
| Land | 4,090 | Retained earnings | 10,500 | |||
| Building | 40,900 | |||||
| Accumulated depreciation | (20,450 | ) | ||||
| NGN | 51,680 | NGN | 51,680 | |||
The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place:
| 2017 | |
| Feb. 1 | Paid 8,090,000 NGN on the note payable. |
| May 1 | Sold entire inventory for 16,900,000 NGN on account. |
| June 1 | Sold land for 6,090,000 NGN cash. |
| Aug. 1 | Collected all accounts receivable. |
| Sept.1 | Signed long-term note to receive 8,090,000 NGN cash. |
| Oct. 1 | Bought inventory for 20,090,000 NGN cash. |
| Nov. 1 | Bought land for 3,090,000 NGN on account. |
| Dec. 1 | Declared and paid 3,090,000 NGN cash dividend to parent. |
| Dec. 31 | Recorded depreciation for the entire year of 2,045,000 NGN. |
The U.S dollar ($) exchange rates for 1 NGN are as follows:
| 2008 | NGN 1 | = | $ | 0.0057 |
| 2010 | 1 | = | 0.0051 | |
| August 1, 2016 | 1 | = | 0.0071 | |
| December 31, 2016 | 1 | = | 0.0073 | |
| February 1, 2017 | 1 | = | 0.0075 | |
| May 1, 2017 | 1 | = | 0.0077 | |
| June 1, 2017 | 1 | = | 0.0079 | |
| August 1, 2017 | 1 | = | 0.0083 | |
| September 1, 2017 | 1 | = | 0.0085 | |
| October 1, 2017 | 1 | = | 0.0087 | |
| November 1, 2017 | 1 | = | 0.0089 | |
| December 1, 2017 | 1 | = | 0.0091 | |
| December 31, 2017 | 1 | = | 0.0102 | |
| Average for 2017 | 1 | = | 0.0092 | |
Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?
(Input all amounts as positive. Enter amounts in whole dollars.)
In: Accounting