Water Bottling Inc.(WBI)is a 100% wholly owned subsidiary with operations in France.WBI was purchased by a Canadian parent on January 1,20X5.The financial records of WBI are maintained in euros and provide the following information with respect to equipment,intangibles and goodwill.
Equipment - purchased on January 1,20X5 for €250,000 - depreciated over 5 years on a straight-line basis.
Equipment - purchased on January 1,20X6 for €175,000 - depreciated over 5 years on a straight-line basis.
Required:
Assume that WBC's functional currency is the Canadian dollar.Calculate the translated Canadian dollar balances for the following accounts for December 31,20X7
a.Equipment
b.Accumulated depreciation - equipment
c.Depreciation expense

Question

Water Bottling Inc.(WBI)is a 100% wholly owned subsidiary with operations in France.WBI was purchased by a Canadian parent on January 1,20X5.The financial records of WBI are maintained in euros and provide the following information with respect to equipment,intangibles and goodwill.
Equipment - purchased on January 1,20X5 for €250,000 - depreciated over 5 years on a straight-line basis.
Equipment - purchased on January 1,20X6 for €175,000 - depreciated over 5 years on a straight-line basis.  
Required:
Assume that WBC's functional currency is the Canadian dollar.Calculate the translated Canadian dollar balances for the following accounts for December 31,20X7
a.Equipment
b.Accumulated depreciation - equipment
c.Depreciation expense

Quizplus · Accepted Answer

The Answer of Water Bottling Inc.(WBI)is a 100% wholly owned subsidiary with operations in France.WBI was purchased by a Canadian parent on January 1,20X5.The financial records of WBI are maintained in euros and provide the following information with respect to equipment,intangibles and goodwill.
Equipment - purchased on January 1,20X5 for €250,000 - depreciated over 5 years on a straight-line basis.
Equipment - purchased on January 1,20X6 for €175,000 - depreciated over 5 years on a straight-line basis.  
Required:
Assume that WBC's functional currency is the Canadian dollar.Calculate the translated Canadian dollar balances for the following accounts for December 31,20X7
a.Equipment
b.Accumulated depreciation - equipment
c.Depreciation expense