contestada

: a) depreciation for equipment purchased on January 1, 20X2 - 120,000 b) rent expense - 200,000 c) bad debt expense - 80,000 Below are the exchange rates at various dates: Date USD equivalent of 1 Local Currency Unit January 1, 20X2 0.50 December 31 ,20X5 0.40 Average, 20X5 0.44 What is the total dollar amount that should be included in Crush's income statement for the above expense accounts if the local currency is the functional currency?

Respuesta :

matthysswart

Answer:

Depreciation - $60 000 Rent Expense - $80000 Bad Debts - $32000

Explanation:

For Depreciation we use the original depreciation cost of 120000 x 0,50 ( original cost ) = 60 000.

Rent expense we use the average for the current year since the rent expense applies to the entire year. The same applies to the bad debts. The average for 20x5 is 0.40

Rent Expense - 200000 x 0.40 = 80000

Bad Debts - 80000 x 0.40 = 32000

Otras preguntas