Westmore reported sales of 1500000 during 2004 What amount would have been

Westmore reported sales of 1500000 during 2004 what

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6.Westmore reported sales of £1,500,000 during 2004. What amount would have been included for this subsidiary in calculating consolidated sales? A) \$2,380,952 B) \$2,400,000 C) \$2,429,150 D) \$2,419,355 E)\$2,425,876 Answer: A Difficulty: Medium 7.On December 31, Westmore had accounts receivable of £280,000. What amount would have been included for this subsidiary in calculating consolidated accounts receivable?
8.Gunther Co. established a subsidiary in Mexico on January 1, 2004. The subsidiary engaged in the following transactions during 2004:Jan. 1Sold common stock to Gunther for 5,000,000 pesos. Purchased inventory throughout the year, 8,000,000 pesos (¼ remained at year-end).Sales throughout the year totaled 12,000,000 pesos.31Purchased equipment for 1,000,000 pesos.Gunther concluded that the subsidiary’s functional currencywas the dollar. Exchange rates for 2004 were:Jan. 11 peso = \$.20311 peso = \$.19Dec. 311 peso = \$.16Weighted average rate for the year1 peso = \$.18What amount of foreign exchange gain or losswould have been recognized on Gunther's consolidated income statementfor 2004? Use the following to answer questions 9-10:Darron Co. was formed on January 1, 2004 as a wholly owned foreign subsidiary of a U.S. corporation. Darron's functional currencywas the stickle (§). The following transactions and events occurred during 2004:Jan. 1Darron issued common stock for §1,000,000.June 30Darron paid dividends of §20,000.Dec. 31Darron reported net income of §80,000 for the year.Exchange rates for 2004 were:
Jan. 1\$1 = §.48June 30\$1 = §.46Dec. 31\$1 = §.42Weighted average rate for the year\$1 = §.44
9.What exchange rate should have been used in translating Darron's revenues and expenses for 2004? 10.What was the amount of the translation adjustmentfor 2004? A)\$293,479 increase in relative value of net assets B)\$302,137 increase in relative value of net assets C)\$300,160 increase in relative value of net assets D)\$187,418 increase in relative value of net assets E)\$270,800 increase in relative value of net assets Answer: B Difficulty: Hard 11.Which of the following translation methods was originally mandated by SFAS No. 8? 12.Which accounts are remeasured using current exchange rates?

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