Aerkion Company starts 2013 with two assets: cash of 19,000 LCU (local currency units) and land that originally cost 70,000 LCU when acquired on April 4, 2005. On May 1, 2013, Aerkion rendered services to a customer for 33,000 LCU, an amount immediately paid in cash. On October 1, 2013, the company incurred an 19,800 LCU operating expense that was immediately paid. No other transactions occurred during the year. Currency exchange rates for 1 LCU follow:
- April 4, 2005 LCU 1 = $ 0.32
- January 1, 2013 1 = 0.33
- May 1, 2013 1 = 0.34
- October 1, 2013 1 = 0.35
- Average for 2013 1 = 0.36
- December 31, 2013 1 = 0.39
Assume that Aerkion is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the LCU is the subsidiary's functional currency. What is the translation adjustment for this subsidiary for the year 2013? (Input the amount as a positive value.)
translation adjustment $
Assume that Aerkion is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the U.S. dollar is the subsidiary's functional currency. What is the remeasurement gain or loss for 2013? (Input the amount as a positive value.)
Remeasurement $
Assume that Aerkion is a foreign subsidiary of a U.S. multinational company. On the December 31, 2013, balance sheet, what is the translated value of the Land account? On the December 31, 2013, balance sheet, what is the remeasured value of the Land account?
- Translated value of land $
- Remeasured value of land $