Plate Corporation, a US company, acquired ownership of Saucer Corporation of Switzerland on January 1, 2011 for $1,500,000 when Saucer's stockholders' equity in Swiss francs (SF)consisted of 700,000 SF Capital Stock and 300,000 SF Retained Earnings.The exchange rate for Swiss francs was $1.20 on January 1.All excess purchase cost was attributed to a Trademark that did not have a recorded book value.The trademark is to be amortized over 20 years.
Saucer's functional currency is Swiss francs and the records are kept in the same currency.A summary of changes in Saucer's stockholders' equity during 2011 and relevant exchange rates are as follows:
Required: Determine the following:
1.Fair value of the Trademark from Plate's investment in Saucer on January 1, 2011 in U.S.dollars.
2.Trademark amortization for 2011 in U.S.dollars.
3.Unamortized Trademark at December 31, 2011 in U.S.dollars.
4.Equity adjustment from the Trademark in U.S.dollars.
5.Income from Saucer for 2011 in U.S.dollars.
6.Investment in Saucer balance at December 31, 2011 in U.S.dollars.

Question

Plate Corporation, a US company, acquired ownership of Saucer Corporation of Switzerland on January 1, 2011 for $1,500,000 when Saucer's stockholders' equity in Swiss francs (SF)consisted of 700,000 SF Capital Stock and 300,000 SF Retained Earnings.The exchange rate for Swiss francs was $1.20 on January 1.All excess purchase cost was attributed to a Trademark that did not have a recorded book value.The trademark is to be amortized over 20 years.
Saucer's functional currency is Swiss francs and the records are kept in the same currency.A summary of changes in Saucer's stockholders' equity during 2011 and relevant exchange rates are as follows:
  Required: Determine the following:
1.Fair value of the Trademark from Plate's investment in Saucer on January 1, 2011 in U.S.dollars.
2.Trademark amortization for 2011 in U.S.dollars.
3.Unamortized Trademark at December 31, 2011 in U.S.dollars.
4.Equity adjustment from the Trademark in U.S.dollars.
5.Income from Saucer for 2011 in U.S.dollars.
6.Investment in Saucer balance at December 31, 2011 in U.S.dollars.

Quizplus · Accepted Answer

The Answer of Plate Corporation, a US company, acquired ownership of Saucer Corporation of Switzerland on January 1, 2011 for $1,500,000 when Saucer's stockholders' equity in Swiss francs (SF)consisted of 700,000 SF Capital Stock and 300,000 SF Retained Earnings.The exchange rate for Swiss francs was $1.20 on January 1.All excess purchase cost was attributed to a Trademark that did not have a recorded book value.The trademark is to be amortized over 20 years.
Saucer's functional currency is Swiss francs and the records are kept in the same currency.A summary of changes in Saucer's stockholders' equity during 2011 and relevant exchange rates are as follows:
  Required: Determine the following:
1.Fair value of the Trademark from Plate's investment in Saucer on January 1, 2011 in U.S.dollars.
2.Trademark amortization for 2011 in U.S.dollars.
3.Unamortized Trademark at December 31, 2011 in U.S.dollars.
4.Equity adjustment from the Trademark in U.S.dollars.
5.Income from Saucer for 2011 in U.S.dollars.
6.Investment in Saucer balance at December 31, 2011 in U.S.dollars.

Plate Corporation, a US Company, Acquired Ownership of Saucer Corporation