Kennedy Company acquired all of the outstanding common stock of Hastie Company of Canada for U.S. $350,000 on January 1, 2018, when the exchange rate for the Canadian dollar (CAD) was U.S. $.70. The fair value of the net assets of Hastie was equal to their book value of CAD 450,000 on the date of acquisition. Any acquisition consideration excess over fair value was attributed to an unrecorded patent with a remaining life of five years. The functional currency of Hastie is the Canadian dollar.For the year ended December 31, 2018, Hastie's trial balance net income was translated at U.S. $25,000. The average exchange rate for the Canadian dollar during 2018 was U.S. $.68, and the 2018 year-end exchange rate was U.S. $.65.Kennedy's share of Hastie's net income for 2018 would be
A. $18,200.
B. $16,000.
C. $15,000.
D. $18,000.
E. $18,500.
Answer: A
You might also like to view...
Ryan is a manager whose only concern is for his employees. Ryan is a ______ leader.
a. team b. compassionate c. country club d. middle of the road
The ________ allows a WTO member state to withdraw temporarily from its GATT obligations when there is a surge in the number of imports coming from other member states
A. escape clause B. general exception C. security exception D. indemnification clause
In order to simplify the record-keeping chores of budgeting, you should use cash to pay bills whenever you can
Indicate whether the statement is true or false.
Of the approaches to job design, ________ is the most recently evolved and attempts to merge earlier perspectives.
A. bottom-up B. i-deals C. job enrichment D. job enlargement E. job rotation