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.The elimination entry to amortize the excess will include a(n)

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The excess of cost over book value can be attributed to a 10-year patent, which means that the excess needs to be amortized over 10 years. Since the payment was made in a foreign currency, the amount needs to be translated into the parent company's currency. The elimination entry to amortize the excess should include a debit to amortization expense for 1,000FC multiplied by the weighted-average exchange rate. This is because the weighted-average exchange rate reflects a more accurate representation of the exchange rate over the 10-year period during which the excess will be amortized.