Q46. The value of December 31, 2006, gross property, plant, and equipment reported in USD is:

A)   $400,000,000.

B)   $304,000,000.

C)   $313,000,000.

Q47. The amount of 2006 depreciation expense in USD is:

A)   $36,000,000.

B)   $30,400,000.

C)   $40,000,000.

Q48. The value of December 31, 2006, inventory reported in USD is:

A)   $55,000,000.

B)   $49,500,000.

C)   $51,700,000.

Q49. The value of all financing debt (notes payable, current portion of long-term debt, and long-term debt) on December 31, 2006,

     reported in USD is:

A)   $171,000,000.

B)   $202,500,000.

C)   $225,000,000.

Q50. The combined value of the common stock and paid in capital on December 31, 2006, reported in USD is:

A)   $63,000,000.

B)   $55,500,000.

C)   $75,000,000.

答案和详解如下：

Q46. The value of December 31, 2006, gross property, plant, and equipment reported in USD is:

A)   $400,000,000.

B)   $304,000,000.

C)   $313,000,000.

Correct answer is A)

Because the operations are independent from the parent, the all-current method will be used. Fixed assets should be accounted for at the current rate. The value is 0.5 × 800,000,000 = $400,000,000.

Q47. The amount of 2006 depreciation expense in USD is:

A)   $36,000,000.

B)   $30,400,000.

C)   $40,000,000.

Correct answer is A)

Because the operations are independent from the parent, the all-current method will be used. Depreciation should be accounted for at the average rate for the past year. The amount of depreciation is 0.45 × 80,000,000 = $36,000,000.

Q48. The value of December 31, 2006, inventory reported in USD is:

A)   $55,000,000.

B)   $49,500,000.

C)   $51,700,000.

Correct answer is A)

Because the operations are independent from the parent, the all-current method will be used. Inventory should be accounted for at the current rate. The value is 0.50 × 110,000,000 = $55,000,000.

Q49. The value of all financing debt (notes payable, current portion of long-term debt, and long-term debt) on December 31, 2006,

     reported in USD is:

A)   $171,000,000.

B)   $202,500,000.

C)   $225,000,000.

Correct answer is C)

Because the operations are independent from the parent, the all-current method will be used. All debt is considered a monetary liability and should be accounted for at the current rate. The value is 0.50 × 450,000,000 = $225,000,000.

Q50. The combined value of the common stock and paid in capital on December 31, 2006, reported in USD is:

A)   $63,000,000.

B)   $55,500,000.

C)   $75,000,000.

Correct answer is B)

Because the operations are independent from the parent, the all-current method will be used. Common stock should be accounted for at the historical rate—the rate in effect when it was issued. The value is 0.37 × 150,000,000 = $55,500,000.