Translate the account balances for inclusion in the

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Reference no: EM13387307

The Alpine Company is a Swiss subsidiary of an American company and its accounts are included in the U.S dollar consolidated statements of the parent company. At the year-end, the following balances were included in the foreign currency balance sheet of the Alpine Company. All amounts are expressed in Swiss Francs which are designated SF hereafter.

DR. CR.

Cash SF 400,000

Long-term receivables 500,000

Inventories 1,200,000

Plant and equipment 4,000,000

Accounts payable SF 300,000

Long-term Liabilities 1,500,000

Accumulated Depreciation 850,000

The long-term receivables and Plant and equipment were acquired several years ago when SF 1 = $0.80. The Long-term liabilities were also issued at this time. The inventories were acquired for SF 1,550,000 when SF 1 = $0.90. However, they are carried at their net realizable value as measured at the year-end. The exchange rate at the year-end date is SF 1 = $0.95.

Required:

Translate the account balances for inclusion in the year-end consolidated balance sheet under the following general methods of translation.

A. Temporal Method

B. Current Rate Method

Reference no: EM13387307

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