p company holds an 80 interest in sfr company a swiss company a trial balance for p 4372685

P Company holds an 80% interest in SFr Company, a Swiss company. A trial balance for P Company and SFr Company at December 31, 2009, and other data are given in Problems 13-9 and 13-10. The following numbers should change, however, from the amounts stated in Problem 13-9: In the P Company trial balance as of December 31, 2009, Investment in SFrCompany is 307,256; Retained Earnings, 1/1 is 543,628; and Equity Income is 62,028. Ignore deferred income taxes in the allocation of the difference between implied and book value.Required:A. If you have not already done so (Problem 13-10), prepare a workpaper to translate the trial balance of the subsidiary into dollars using the temporal method of translation. The subsidiary’s beginning retained earnings balance in the translated balance sheet is $76,660.B. Prepare the journal entries made on the books of P Company during 2009 to account for the investment in SFr Company. P Company uses the complete equity method to record its investment in SFr Company. At the date of acquisition, the 760,000 franc difference between implied and book value interest acquired was allocated as follows:The building is depreciated over a 10-year remaining life using the straight-line method of amortization.C. Prepare a consolidated statements workpaper at December 31,2009.
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P Company holds an 80 interest in SFr Company a

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