Problems 1-4: At the beginning of 2010 GAGA, an American Company purchasedall of the stock of Bieber Company a Canadian ...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

Problems 1-4: At the beginning of 2010 GAGA, an American Company purchased
all of the stock of Bieber Company a Canadian Company for $600,000 US dollars
when the Canadian dollar was worth $1. At this time all the assets of Bieber had a
book value equal to their market value and the owner’s equity of Bieber was
$580,000.
Additional information about Bieber:
In 2011 Bieber bought equipment for 1,000,000 Canadian dollars when the
Canadian dollar was worth $0.97.
In 2012 Bieber bought the land for 200,000 Canadian dollars when the Canadian
dollar was worth $1.01.
On 12/31/2015 Bieber’s retained earnings in US dollars was $350,000
The average exchange rate in 2016 was 1 Canadian dollar = $0.91
The exchange rate on 12/31/2016 was 1 Canadian dollar = $0.95
The exchange rate on 8/1/2016 when Bieber paid a 10,000 Canadian dollar
dividend was 1 Canadian dollar equals $0.97

INCOME STATEMENT for the year 2016
Prepared under US Gaap

GAGA (US $)

BIEBER (Canadian $)

SALES

3,000,000

200,000

SALARY EXPENSE

400,000

50,000

DEPRECIATION EXP

1000000

100,000

INVESTMENT INC.
INCOME

9700
1,609,700

0
50000

BALANCE SHEET

GAGA

BIEBER

CASH

11,000,000

630,000

A/R

5,000,000

200,000

EQUIPMENT

10,000,000

1,000,000

A/D EQUIPMENT

2,000,000

200,000

LAND

1,000,000

200,000

INVESTMENT IN BIEBER

600,000

0

TOTAL ASSETS

25,600,000

1,830,000

NOTE PAYABLE

5,000,000

800,000

COMMON STOCK

12,500,000

600,000

RETAINED EARNINGS

8,100,000

430,000

NOTE: GAGA USES THE INITIAL VALUE METHOD FOR ITS INVESTMENT IN BIEBER;
HENCE THE INVESTMENT STAYS AT 600,000 AND INVESTMENT INCOME IS ONLY
THE DIVIDEND OF BIEBER.

REQUIRED: 1) REMEASURE THE FINANCIAL STATEMENTS OF BIEBER INTO US
DOLLARS USING THE TEMPORAL METHOD
2) TRANSLATE THE FINANCIAL STATEMENTS OF BIEBER INTO US DOLLARS USING
THE CURRENT RATE METHOD

3) PREPARE A CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT FOR
GAGA WHEN BIEBER USED THE TEMPORAL METHOD…NOTE WORKSHEET ENTRIES
ARE NOT NEEDED ONLY THE STATEMENTS THEMSELVES (hint: don’t forget the
goodwill at acquisition)










OUR SERVICE CHARTER







  • Better Grades Guarantee

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.
  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.
  • Money Back Guarantee

    If any of our writers deliver an incomplete or ambiguous paper that is off the topic, our clients can claim for a refund in regard to the oversight. We do not compromise our service delivery through submission of a paper that does not follow our clients’ instructions. We also mind about the interest of our customers, and we always give them value for their money. However, our clients have a choice to request for a free revision within 14-30 days, or depending on the length of the submitted paper. A client who needs a refund should send a request for it within 14 days after receiving the completed paper. If a client decides not to download the paper, then they can request for 100% refund. Any refunded amount usually goes to the client’s Bonus Balance as store credit. There is always extra compensation when the refund takes the form of store credit. Alternatively, the refunded amount can also go the client’s credit card.
  • Professional Academic Writers

    An academic degree is one of the qualifications that our writers hold. This is only a minimum requirement that we ask from our writers, but the team also has writers who possess higher educational credentials. It means that the team comprises of competent writers who have gone through institutions of higher learning and passed their exams. Subsequently, the writers have a good grasp of what our clients require. It is notable that our writers not only want to apply their acquired knowledge, but they are also willing to help our clients to outperform them. This is a clear indication of a team that is willing to walk an extra mile. We uphold professionalism in our operations, and our clients should look forward to receive services from a team of experts. It is the spirit of value addition that makes us to scale any heights in order to deliver and outperform our clients’ expectations.