This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: (10,000 ) x $.21 = (2,100 ) Ending net monetary assets, 12/31 P 50,000 $ 8,900 Ending net monetary assets at the current exchange rate. ........ P 50,000 x $.22 = (11,000 ) Remeasurement gain. ..................... $(2,100 ) 16. C Marketable equity securities are carried at market value and therefore translated at the current exchange rate under the temporal method. 17. B When the U.S. dollar is the functional currency, SFAS 52 requires remeasurement using the temporal method with remeasurement gains and losses reported in income. 18. B Wages payable is translated at the current exchange rate. 19. C Gains and losses on hedges of net investments (whether through a forward contract, borrowing, or other technique) are offset against the translation adjustment being hedged. 20. D Remeasurement gains are reported in the income statement as a part of income from continuing operations....
View Full Document
This note was uploaded on 02/08/2012 for the course ACCOUNTING 559 taught by Professor Keating during the Spring '07 term at DeVry Addison.
- Spring '07