Zookal
Zookal

We’d love to hear any feedback or comment from you!

© 2011-2021 Zookal Pty Ltd

View question and answer

From our collection of questions and answers
Business · Accounting
Question details

On January 1, 2016, Cayce Corporstion acquired 100 percent of Simbel Company for considerstion transferred with a fair value of $134,100. Cayce is a U.S-based compsny hesdquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of considerstion transferred over book value is attributable to undervalued land on Simbels books. Simbel had no retained earnings at the date of acquisition. Following are the 2017 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds E). ЕЕ sales Cost of goods sold alary expense 216,82e (21,880) (24,e8e) EE 846 (444, 188) (78,880) (48,888) Other cxpenses (62,88e Dividend inconc-fron simbel 16,s8e Gain on sale of building, 18/1/17 4,080 2nE 254,880 Net inconc Retained earnings, 1/1/17 Net incOTe Dividends 328,eee 77,780 254,eee Rctained carnings, 12/31/17 Cash and reccivables Inventory Prepaid expenscs Investnent in Simbel (initial valuc) Property, plant&equiprent (net) 99,eee 38,880 134,1ee 319,eee Total assets Accounts payable Notes payablc due in 2828 Cormon stock Additional paid-in capital Retained carnings, 12/31/17 $ 884,980 13e,88e 98,880 143,88e 258,880 156,eee Total liabilities and cquities $ 884,980 Additional Information During 2016, the first year of joint operation, Simbel reported income of £E 173,000 earned evenly throughout the year. Simbel declared a dividend of E 32000 to Csyce on June 1 of that yesr. Simbel also declared the 2017 dividend on June 1. . . on December 9, 2017, Simbel classified £E 11,000 expenditure “ , rent expense, olthough this payment related to prepayment of rent for the first few months of 2018. The exchange rates for 1E are as follows January 1, 2816 June 1, 2816 Weighted average rate for 2816 Decerber 31, 2817 June 1, 2817 Dctober 1, 2817 Weighted average rate for 2817 Decerber 31, 2817 275 .273 Translste Simbels 2017 financial statements into U.S. dollars and prepsre a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiarys functional currency.

Answer
Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.

Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.