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In its December 31, 2022 income statement, what is the amount to be reported by Manila
Company as foreign exchange difference?
A. P9,000 gain
B. P3,367 loss
C. P3,367 gain
D. P9,000 loss
Problem 4. The following are taken from the records of Elite imports company, a foreign
subsidiary in New Zealand.
NZ dollar
Total Assets
12/31/15
146,000
Total Liabilities
12/31/15
45,000
Common Stock
12/31/15
60,000
Retained Earnings
01/01/15
29,000
Net Income
2015
15,000
Dividends Declared
12/31/15
3,000
Exchange rates:
Current rate
Historical rate
Weighted average rate
P10
11
12
$1.63 : P1
$1.56 : P1
$1.60 : P1
$1.58 : P1
What fair value adjustment is required to the carrying amount of land in the consolidate
Statement of financial position?
A. P30,864
B. P31,250
C. P32,051
D. P31,646