Quadros Inc., a Portugese firm was acquired by a U.S. company on January 1, 2010. Selected account balances are available for the year ended December 31, 2011, and are stated in euro, the local currency.
-Assume the functional currency is the U.S. dollar, compute the U.S. balance sheet amount for accumulated depreciation for 2011.

Question

Quadros Inc., a Portugese firm was acquired by a U.S. company on January 1, 2010. Selected account balances are available for the year ended December 31, 2011, and are stated in euro, the local currency. 
-Assume the functional currency is the U.S. dollar, compute the U.S. balance sheet amount for accumulated depreciation for 2011.

Quizplus · Accepted Answer

Accumulated depreciation is a contra-asset account that reduces the carrying value of a fixed asset. The U.S. dollar equivalent of accumulated depreciation for 2011 is $40,950.