Solution-What would be the amount shown for capital assets

What would be the amount shown for capital assets

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Reference no: EM133075654

Question - AAA Ltd., a company based in France, acquired EURO$240,000 of capital assets on January 1, 2018, when the company was established. These assets were being amortized over 11 years on a straight-line basis, with no significant residual value expected. On January 1, 2019 BBB Inc., a Canadian company with no capital assets of its own, acquired 100% of the outstanding shares of AAA.

If AAA is considered to be a self-sustaining foreign subsidiary, what would be the amount shown for capital assets (net) when translated into Canadian Dollars as at December 31, 2019? Use the exchange rates below:

January 1, 2018 CDN$1.00 = EURO $0.78

January 1, 2019 CDN$1.00 = EURO $0.79

Average for 2019 CDN$1.00 = EURO $0.789

December 31, 2019 CDN$1.00 = EURO $0.791

January 1, 2020 CDN$1.00 = EURO $0.778

Average for 2020 CDN$1.00 = EURO $0.762

December 31, 2020 CDN$1.00 = EURO $0.805

Reference no: EM133075654

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What would be the amount shown for capital assets

Reference no: EM133075654

Reference no: EM133075654

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