A- Assume that an Italian corporation exports electronic equipment to USA in a transaction denominated in dollar. Is this transaction a foreign currency transaction? Is it a foreign transaction? Explain the difference between these two concepts and their application here.
B- “Exchange losses arise from foreign import activities, and exchange gains arise from foreign export activities.”. Discuss the accuracy of this statement and support your answer with a numerical example.
C- Penguin Corporation paid $16,200 for a 90% interest in Seagull Corporation on January 1, 2019, when Seagull stockholders’ equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings. The excess cost over book value was attributable to goodwill.
- All intercompany sales of inventory are made at 120% of cost. During 2019, Seagull ‘s sales to Penguin were $4,800, of which half of the merchandise remained in Penguin ‘s inventory at December 31, 2019. (The 2019 ending inventory was sold in 2020.) During 2020, Penguin’s sales to Seagull were $6,000 of which 60% remained in Seagull’s inventory at December 31, 2020. At year-end 2020, Seagull owed Penguin $1,500 for the inventory purchased during 2020.
- Penguin Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Seagull Corporation on January 1, 2020 for $2,800. Straight-line depreciation is used.
- Separate company financial statements for Penguin Corporation and Subsidiary at December 31, 2020 are summarized in the first two columns of the consolidation working papers.
Type of services: Academic paper writing
Type of assignment: Essay
Pages / words: 3/825
Number of sources: 0
Academic level: Junior(College 3rd year)
Paper format: MLA
Line Spacing: Double
Language style: US English