for US $200,000 when the exchange rate as US $1=CDN $1.25. At
December 31 year-end, the inventory had a market value of US
$210,000 and the exchange rate was US $1 = CDN $1.18. What will be
the total gain (loss) on this inventory for 2019?
Questions B and C are based on
the following information:
On April 1, 2019, Avengers Inc., a Canadian public company,
issues £1,250,000 in long-term debt to lenders in the United
Kingdom. The debt pays interest at an annual rate of 12
percent, with payments due on March 31 of each year. The debt
matures on March 31, 2024. Avengers closes its books on
December 31 and prepares its financial statements in Canadian
dollars. As a consequence, all amounts relating to this debt
must be translated. Relevant exchange rates are as
follows:
- A In November 2019 Captain America Inc Purchased Inventory For Us 200 000 When The Exchange Rate As Us 1 Cdn 1 25 1 (33.97 KiB) Viewed 40 times
Interest Expense relating to the long-term debt that will be
reported in Avengers’ Income Statement for the year ending December
31, 2019 would be.
C. How much
foreign Exchange Gain (Loss) on the long-term debt that
would be reported in Avengers’ Income Statement for the year ending
December 31, 2020.
Questions D and E are based on the
following information:
Superman owns 80% of the common shares of Batgirl and 40% of the
common shares of Conan. In addition, Batgirl owns 15% of
the common shares of Conan.
D.. Based strictly on
its share ownership, what best represents Superman’s relationship
to Conan
E. On
Superman’s separate entity financial statements, what percentage of
Conan’s income would flow to Superman under the equity method of
accounting?
- A In November 2019 Captain America Inc Purchased Inventory For Us 200 000 When The Exchange Rate As Us 1 Cdn 1 25 2 (139.9 KiB) Viewed 40 times
Questions F through G are based on the following information: Use the following information for parts F to G. The following amounts (stated in millions) are to be used to determine which segments are reportable. Segment A Revenues Interdivision External 100 900 Revenues Total 1,000 Operating Profit/(Loss) Assets 250 2,600 B 0 600 600 50 4,000 С 460 1,540 2,000 (60) 1,200 D 300 200 500 40 5,600 E 40 760 800 (240) 14,000 F 200 1,600 1,800 210 2,000 G 300 0 300 30 2,000 H 500 1,200 1,700 180 7,500 I 100 800 900 40 3,300 Total 2,000 7,600 9,600 500 12,200 F. Using only the operating profit test, which of the operating segments would be reportable? (1 mark) G. Using all of the tests for reporting operating segments in Section 1701 of the CPA Handbook, which operating segments would qualify as reportable segments? (1 mark)