Topic: translation and remeasurement gains and losses on january 1, 2020, a hong kong subsidiary was acquired by a u. s. company. the subsidiary’s trial balances for the beginning and end of 2020 appear below, in hong kong dollars (hk$): january 1, 2020 december 31, 2020 dr (cr) dr (cr) cash and receivables hk$ 2,000 hk$ 1,600 plant assets, net 10,000 9,000 liabilities (9,000) (7,100) capital stock (500) (500) retained earnings, beginning (2,500) (2,500) sales revenue (8,000) depreciation expense 1,000 other operating expenses _6,500 hk$ 0 hk$ 0 sales revenue and other operating expenses occurred evenly during 2020. exchange rates (u. s. dollars/hk$) are as follows: january 1, 2020 $0.120 average for 2020 0.130 december 31, 2020 0.136

required

a. the subsidiary’s functional currency is the hong kong dollar. calculate the translation gain or loss for 2020. specify whether it is a gain or loss.

b. the subsidiary’s functional currency is the u. s. dollar. calculate the remeasurement gain or loss for 2020. specify whether it is a gain or loss.

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

Camilo is a self-employed roofer. he reported a profit of $30,000 on his schedule c. he had other taxable income of $5,000. he paid $3,000 for hospitalization insurance. his self-employment tax was $4,656. he paid his former wife $4,000 in court-ordered alimony and $4,000 in child support. what is the amount camilo can deduct in arriving at adjusted gross income (agi)?

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?