What is the translated value of the Land account

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Question - Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 29,800 dinars, accounts receivable of 82,300 dinars, and land that cost 223,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 173,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 143,000 dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a 123,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year. Currency exchange rates for 1 dinar follow:

April 1, 2016 $0.56 = 1 dinar January 1, 2017 0.59 = 1 May 1, 2017 0.60 = 1 June 1, 2017 0.62 = 1 December 31, 2017 0.64 = 1

1. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the dinar is the subsidiary's functional currency. What is the translation adjustment for this subsidiary for the year 2017?

2. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the U.S. dollar is the subsidiary's functional currency. What is the remeasurement gain or loss for 2017?

3. Assume that Zugar is a foreign subsidiary of a U.S. multinational company. On the December 31, 2017, balance sheet, what is the translated value of the Land account? On the December 31, 2017, balance sheet, what is the remeasured value of the Land account?

Reference no: EM132346496

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