On January 1, 20X2, U.S.A. Inc. created an Algerian subsidiary, Niko, Inc. The books are kept in Algerian dinars, but the functional currency is the U.S. dollar. Dividends are paid on December 31, and income is earned evenly throughout the year. The earnings and dividends of Niko in dinars are as follows:
Exchange rates are given below.
Required:
Calculate the balance in retained earnings for Niko in dollars as of December 31, 20X4.

Question

On January 1, 20X2, U.S.A. Inc. created an Algerian subsidiary, Niko, Inc. The books are kept in Algerian dinars, but the functional currency is the U.S. dollar. Dividends are paid on December 31, and income is earned evenly throughout the year. The earnings and dividends of Niko in dinars are as follows:
  Exchange rates are given below.
  Required:
Calculate the balance in retained earnings for Niko in dollars as of December 31, 20X4.

Quizplus · Accepted Answer

The Answer of On January 1, 20X2, U.S.A. Inc. created an Algerian subsidiary, Niko, Inc. The books are kept in Algerian dinars, but the functional currency is the U.S. dollar. Dividends are paid on December 31, and income is earned evenly throughout the year. The earnings and dividends of Niko in dinars are as follows:
  Exchange rates are given below.
  Required:
Calculate the balance in retained earnings for Niko in dollars as of December 31, 20X4.