(Done Paper) Referencing Styles : Harvard Question1: On Jan 1 , 2001, Firm Euro , based in Paris, France, contracted Firm USA, based in Washington, USA, to cons

//(Done Paper) Referencing Styles : Harvard Question1: On Jan 1 , 2001, Firm Euro , based in Paris, France, contracted Firm USA, based in Washington, USA, to cons

(Done Paper) Referencing Styles : Harvard Question1: On Jan 1 , 2001, Firm Euro , based in Paris, France, contracted Firm USA, based in Washington, USA, to cons

Question1: On Jan 1 , 2001, Firm Euro , based in Paris, France, contracted Firm USA, based in Washington, USA, to construct a sateline at a cost of US $20 million.The satellite was completed and shipped on June 1, 2003, paid on June 30, 2003 and arrived Paris on July 14, 2003.Exchange rates had changed on the following dates:January 1, 2001 &n … View More Question1: On Jan 1 , 2001, Firm Euro , based in Paris, France, contracted Firm USA, based in Washington, USA, to construct a sateline at a cost of US $20 million. The satellite was completed and shipped on June 1, 2003, paid on June 30, 2003 and arrived Paris on July 14, 2003. Exchange rates had changed on the following dates: January 1, 2001 USD/EUR 1. 2 (USD $1 =1.2 EURO) June 1, 2003 USD/EUR 1.3 June 30, 2003 USD/EUR 1.0 July 14, 2003 USD/EUR 1.5 Required: What is the implication for the carrying amount of the satellite as an asset if it were a “ qualifying asset”, in view of the changes in exchange rates? (PDF-PAGE 5) Question 2: Parent Company owns 90% of the issued shares of Firm Child . On July 1, 2001, Firm Child sold a machine , the carrying amount of which is $180,000, to Parent Company for $200,000. Assume (i) Parent Company uses 10% straight line depreciation for the machine; ii) tax rate for both companies is 30% and (ii) June 30 is the financial year end. Required: a) What are the consolidation adjustment entries for the sale? b) What are the consolidation adjustment entries for depreciation entries for depreciation as at June 30, 2003? c) What are the tax-effect consolidation adjustment entries for depreciation as at June 30, 2003? (PDF: PAGE 60 – SAMPLE)

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By | 2018-08-25T18:48:22+00:00 August 25th, 2018|Business|0 Comments

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