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Unformatted text preview: In most cases, average rate for the year is acceptable, because depreciation occurs evenly throughout the year. Depreciation is recorded at year-end only as a matter of convenience. Cash as an asset, use the current rate at the balance sheet date. Accumulated depreciation as a contra-asset account, use the current ex-change rate at the balance sheet date. Common stock as an equity account, use historic rate at time of recording, the date of issuance. 22.(5 minutes) (Determine translated values) As a translation, both the asset (inventory) and the liability (accounts payable) utilize the current exchange rate at the balance sheet date (December 31). Thus, the translated values are as follows: Inventory LCU120,000 x 25% left = LCU30,000 x 1/3.0 = $10,000 Accounts payable LCU120,000 x 40% unpaid = LCU48,000 x 1/3.0 = $16,000...
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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