Aries Inc holds a 90 interest in Sharatan Ltd a #78

Aries Inc. holds a 90% interest in Sharatan Ltd., a corporation based in France. The functional
currency of Sharatan (self-sustaining subsidiary) is the euro. Aries's interest in Sharatan was
purchased on December 31, 2012, for €1,485,000. The carrying amount of Sharatan's
identifiable net assets was €1,425,000 at the acquisition date. The entire purchase discrepancy
was attributed to goodwill and no impairment of goodwill has occurred. Aries uses the full good
will method to value non-controlling interest, fair valued at €165,000.Additional information:1. All
of Sharatan's property, plant, and equipment was purchased on the date of its incorporation,
January 1, 2010.2. Sharatan's ending inventory was purchased on September 30, 2013.3.
Dividends of €150,000 were declared and paid by Sharatan on December 31, 2013.4.
Exchange rates are as follows:January 1, 2010 .......... €1 = C$1.40December 31, 2012......... €1
= C$1.46September 30, 2013 ......... €1 = C$1.54December 31, 2013 ......... €1 =
C$1.56Average for 2013 ......... €1 = C$1.51Required(a) Calculate Sharatan's other
comprehensive income in Canadian dollars.(b) Prepare Sharatan's December 31, 2013,
balance sheet in Canadian dollars.(c) Aries's separate entity financial statements do not contain
any other comprehensive income. Calculate Aries's consolidated other comprehensive income
and determine how much is attributable to the equity holders of Aries.View Solution:
Aries Inc holds a 90 interest in Sharatan Ltd a

ANSWER
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