ACT506_CTAssignment_Mod04_Option02.xlsx

ACT506_CTAssignment_Mod04_Option02.xlsx - ACT506 Critical...

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ACT506 Critical Thinking Assignment Module 4 Option #2 Consolidation at Acquisition Date of Foreign Subsidiary into the U.S. Parent, Push Corporation on Jan 02, 20x7 Information: 1) Push Corporation purchased Summer British Corp on Jan 02, 20x7, for 100% control. 2) The local currency for Summer Britain Corp is the British Pound. This is the functional currency. 3) The British Subsidiary had revenue of $10,000. Push Corp received $10,000 Dollars with a U.S. Comp 4) Relevant Spot exchange rates ($/ GBP) (One GBP equals the values at the time) Date Rate 1/2/20x7 1.30 20x7 Average 1.35 Not used as this would be used for Revenues and Expe
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pany when the exchange rate was $1.20 = (GBP) 1.00. No entry because goes on the income statem USD $1.20 GBP $1.00 enses on the income statement
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ment not the balance sheet.
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Assume that Parent (PUSH Corporation) decides to acquire 100% Subsidiary (Summer Briti Push Company Balance Sheet Assets, Liabilities & Equities Book Value Cash $1,800,000 Account AR $20,000 1) Cash Inventory $100,000 AR Land $30,000 Inventory PP&E $300,000 Land Accumulated Depreciation -$150,000 PP&E Patent
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