On january 1 20x8 transport corporation acquired 75 percent

Assignment Help Accounting Basics
Reference no: EM13575239

On January 1, 20X8, Transport Corporation acquired 75 percent interest in Steamship Company for $300,000. Steamship is a Norwegian company. The local currency is the Norwegian kroner (NKr). The acquisition resulted in an excess of cost-over-book value of $25,000 due solely to a patent having a remaining life of 5 years. Transport uses the fully adjusted equity method to account for its investment. Steamship's December 31, 20X8, trial balance has been translated into U.S. dollars, requiring a translation adjustment debit of $8,000. Steamship's net income translated into U.S. dollars is $35,000. It declared and paid an NKr 20,000 dividend on June 1, 20X8. Relevant exchange rates are as follows:

Jan 1, 2008                           NKrl=$0.20

June 1, 2008                         NKrl =$0.23

Dec 31, 2008                        NKrl=$0.24

Average 2008                       NKrl=$0.22

Assume the kroner is the functional currency. Based on the preceding information, in the journal entry to record the receipt of dividend from Steamship,

Reference no: EM13575239

Questions Cloud

Blanchford enterprises is considering a project that has : blanchford enterprises is considering a project that has the following cash flow data. what is the projects payback?
You plan to retire as soon as you can accumulate 1 million : today is your 21st birthday and you just decided to start saving money so you can retire early. thus you are going to
Steve and linda hom live in bartlesville oklahoma two years : steve and linda hom live in bartlesville oklahoma. two years ago they visited thailand. linda a professional chef was
It currently sells for 3525 per share the dividedend is : it currently sells for 35.25 per share. the dividedend is projected to increase at a constant rate of 4.50 per year.
On january 1 20x8 transport corporation acquired 75 percent : on january 1 20x8 transport corporation acquired 75 percent interest in steamship company for 300000. steamship is a
The bonds have a 20-year maturity an annual coupon rate of : charles river company has just sold a bond issue with 10 warrants attached. the bonds have a 20-year maturity an annual
If the apr of a savings account is 48 and interest is : if the apr of a savings account is 4.8 and interest is compounded monthly what is the approximate apy of the account?a.
A decrease in the prepaid expenses account of 1000 over : a decrease in the prepaid expenses account of 1000 over the course of a year would be shown on the companys statement
At the beginning of the year the balance in the allowance : 1. after the accounts are adjusted and closed at the end of the fiscal year accounts receivable has a balance of 340000

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find advantages of normalization outweigh disadvantages

Under what circumstances would you not want to normalize a table? Finally, do you feel the advantages of normalization outweigh the disadvantages?

  A department has no beginning work in process

A department has no beginning work in process, has started 80,000 units and completed 50,000 units. Its ending work in process is 30,000 units, 60% complete as to conversion costs and fully complete as to materials.

  Xyz company produces three products a b and c product a has

xyz company produces three products a b and c. product a has a contribution margin of 20 and requires 1 hour of machine

  Cost of goods sold using the fifo periodic inventory method

Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, LoPrice Electronics" year-end.

  Prepare a retained earnings statement for the year

Prepare a retained earnings statement for the year - Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions.

  Concept of percentage-of-completion method

At the end of 2011, the costs to date were $6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2011 were $3,000,000 and the cash collected during 2011 was $2,000,000. Eilert uses the percentage-of-co..

  Estimating the loss accrual

Neer Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amount. The loss accrual should be:

  Composition of the risky portfolio

Now add a set of indifference curves and illustrate how an investor's optimal portfolio is some combination of the risky portfolio and the risk-free asset. What is the composition of the risky portfolio?

  Prepare the journal entries you believe are necessary to

you have the following ledger balancescash

  What is the pv of these future salary payments

Mike Polanski is 30 years of age and his salary next year will be $41,000. Mike forecasts that his salary will increase at a steady rate of 5% per annum until his retirement at age 60.

  Edison stagg and thornton have the following financial

edison stagg and thornton have the following financial information at the close of business on july

  Describe the concept of depreciation which of the

a variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd