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NEW QUESTION: 1
In 2001, Continental Supply Company was formed to provide drilling equipment and supplies to contractors and oilfield production companies located throughout the United States. At the end of 2005, Continental Supply created a wholly owned foreign subsidiary, International Oilfield Incorporated, to begin servicing customers located in the North Sea. International Oilfield maintains its financial statements in a currency known as the local currency unit (LCU). Continental Supply follows U.S. GAAP and its presentation currency is the U.S. dollar.
For the years 2005 through 2008, the weighted-average and year-end exchange rates, stated in terms of local currency per U.S. dollar, were as follows:
International Oilfield accounts for its inventory using the lower-of-cost-or-rnarlcet valuation method in conjunction with the first-in, first-out, cost flow assumption. All of the inventory on hand at the beginning of the year was sold during 2008. Inventory remaining at the end of 2008 was acquired evenly throughout the year.
At the beginning of 2006, International Oilfield purchased equipment totaling LCU975 million when the exchange rate was LCU 1.00 to SI. During 2007, equipment with an original cost of LCU 108 million was totally destroyed in a fire. At the end of 2007, International Oilfield received a LCU 92 million insurance settlement for the loss. On June 30, 2008, International Oilfield purchased equipment totaling LCU 225 million when the exchange rate was LCU 1.25 to $1.
For the years 2007 and 2008, Continental Supply reported International Oilfield revenues in its consolidated income statement of S375 million and $450 million, respectively. There were no inter- company transactions. Following are International Oilfield's balance sheets at the end of 2007 and 2008:
At the end of 2008, International Oilfield's retained earnings account was equal to $525 million and, to date, no dividends have been paid. All of International Oilfield's capital stock was issued at the end of
2005.
Compute the cumulative translation adjustment reported on Continental Supply's consolidated balance sheet at the end of 2008 assuming International Oilfield is a relatively self-contained and independent, operation of Continental Supply.
A. -$227 million.
B. $298 million.
C. -$200 million.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Under the all-current method, gains and losses that occur as a result of the translation process do not show up on the income statement but are instead accumulated in a balance sheet account called the cumulative translation adjustment account (CTA). The translation gain or loss in each year is calculated and added to the account, acting like a running total of translation gains and losses. The CTA is simply an equity account on the balance sheet. To compute the CTA for Continental's balance sheet, force the accounting equation (A = L + E) to balance with the CTA; [(120 million cash and receivables + 631.3 million inventory + 820.7 million equipment - 600 million liabilities) / 1.50] - $350 million capital stock - $525 retained earnings = -$227 million. The LCU 350 capital stock was issued at the end of 2005 at an exchange rate of LCU 1 = $1. The $525 retained earnings figure was given in the itxt. (Study Session 6, LOS 23.c)
NEW QUESTION: 2
DRAG DROP
Drag and drop the OTV component on the left to the function it performs on the right.
Answer:
Explanation:
NEW QUESTION: 3
Note the following parameter settings:
Which setting is NOT allowed?
A. ALTER SYSTEM SET DB_8K_CACHE_SIZE=10M;
B. ALTER SYSTEM SET DB_CACHE_SIZE=50M;
C. ALTER SYSTEM SET DB_16K_CACHE_SIZE=10M;
D. ALTER SYSTEM SET DB_4K_CACHE_SIZE=10M;
Answer: A
Explanation:
Section: Initialization, Parameters, File Location & Server Configuration
http://www.akadia.com/services/ora_asm_multiple_block_sizes.html
db_block_size integer 8192 - is the db default so you can't have 8K subcache.
NEW QUESTION: 4
A. Option D
B. Option B
C. Option C
D. Option A
Answer: C
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