If Maker is considered to be an integrated foreign subsidiary (i.e., the functional currency of the foreign operation is the same as the parent), what amount will be shown for amortization expense on Holdings consolidated income statements for the year ended on December 31, 2017?
Maker Ltd., an American company, acquired US$200,000 of capital assets on January 1, 2015, when the
company was established. These assets were being amortized over 10 years on a straight-line basis, with no
significant residual value expected. On January 1, 2016, Holdings Inc., a Canadian company with no capital
assets of its own, acquired 100% of the outstanding shares of Maker. US$40,000 of the acquisition differential
was allocated to the capital assets, which had eight years remaining economic life on the acquisition date.
On March 1, 2017, Maker acquired a further $80,000 of capital assets, which had an estimated useful life of eight years from that date.
Exchange rates for the period from January 1, 2015 to December 31, 2017 were:
A) $29,010. B) $29,210. C) $27,500. D) $29,425.
B) $29,210.
You might also like to view...
The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?
A. Debit Salaries Expense and credit Salaries Payable. B. Debit Accrued Salaries and credit Salaries Payable. C. Debit Salaries Payable and credit Salaries Expense. D. Debit Salaries Expense and credit Cash. E. Debit Cash and credit Salaries Expense.
Greater consumer control means that companies can no longer rely on ________
A) promoting brand-consumer interaction B) marketing by intrusion C) creating market offerings and messages that involve consumers D) developing marketing concepts with an outside-in perspective E) marketing by attraction
What does Brunsson find is normal in organizations?
a. Cheating b. Lying c. Hypocrisy d. Morality
Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below. Alternative X Alternative YMaterials costs$41,000 $59,000Processing costs$45,000 $45,000Equipment rental$17,000 $17,000Occupancy costs$16,000 $24,000What is the financial advantage (disadvantage) of Alternative Y over Alternative X?
A. $132,000 B. $145,000 C. $119,000 D. $26,000