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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Perez Company, a Mexican subsidiary of a U.S. company, sold equipment costing 200,000 pesos with accumulated depreciation of 75,000 pesos for 140,000 pesos on March 1, 2011. The equipment was purchased on January 1, 2010. Relevent exchange rates for the peso are as follows:
January 1, 2010 $.11
March 1, 2011 .106
December 31, 2011 .102
Average, 2011 .105
1. The financial statements for Perez are translated by its U.S. parent. What amount of gain or loss would be reported in its translated income statement?
2. The financial statements for Perez are remeasured by its U.S. parent. What amount of gain or loss would be reported in its income statement?
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