Palm and Star: When Palm, Inc. acquired its 100% investment in Star Co, a foreign entity, the excess of cost over book value was 10,000FC. This excess was traceable to a 10-year patent.
-Refer to Palm and Star. The elimination entry to distribute the excess will include a(n)
A) debit to Patent for 10,000FC times the current exchange rate
B) debit to Patent for 10,000FC times the historical exchange rate
C) credit to Investment in Star for 10,000FC times the average exchange rate
D) credit to Cumulative Translation Adjustment for 10,000FC times the historical exchange rate
Correct Answer:
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