Borrow Overseas Corp. (BOC) is a Canadian company that reports its financial results in Canadian dollars in accordance with IFRS. On December 31, 20X5, BOC’s year end, the company borrowed €1,000,000. This two-year loan is repayable in full on December 31, 20X7. Interest is payable annually at 6% with the first interest payment due on December 31, 20X6. Pertinent exchange rate information follows: Date Exchange rate
December 31, 20X5 €1.00 = C$1.4267December 31, 20X6 €1.00 = C$1.4345December 31, 20X7 €1.00 = C$1.4129Average rate for December 20X6 €1.00 = C$1.4322Average rate for December 20X7 €1.00 = C$1.4143Average rate for 20X6 €1.00 = C$1.4306Average rate for 20X7 €1.00 = C$1.4188Required:
Prepare separate journal entries to reflect all events during the lifetime of the loan that impacts BOC’s year-end financial statements. Support the journal entries with a brief explanation as to their nature. Include supporting calculations in the journal entries or reference their location elsewhere on the worksheet.

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)

Adecision is made at the margin when each alternative considers