Reference no: EM132602250
On Jan.1, 2019, EL acquired 70% voting shares of EA which is operating in the U.S. On the acquisition day, only its equipment with a remaining useful life of 10 years was undervalued by 4,000.
Assume the spot rates given under A (this rate should be used), also assume the average spot rate is 1.2, the spot rate on the day year-end inventory was purchased is 1.12, the spot rate on the day when dividends are declared is 1.19.
Question 1: What is the difference in gain or loss from the translation of the acquisition differential amortization between PCT and FCT method?
Question 2: What is the difference in the translated unamortized acquisition differential between PCT and FCT as of Dec 31, 2019?
Question 3: What is the difference in the exchange rate that is used to translate year-end net monetary position between PCT and FCT?
Question 4: What is the difference in the exchange rate that is used to translate dividends between PCT and FCT?