A state or local governments statement of changes in fiducia

A state or local government\'s statement of changes in fiduciary net position O A. O B. Reports changes in net position for permanent funds. Does not present information about changes in the net position of an agency fund. C. Reports changes in assets held in trust for other funds of the reporting entity O D. Includes changes that also are reported in the government-wide financial statements.

Solution

1) A state or local government\'s statement of changes in fiduciary net position

Answer  Does not present information about changes in the net position of an agency fund.

2) Answer A) $ 176,000 is correct .

Explanation

$ 180,000 * 30% = $54,000 ( Deferred Tax Asset) The applicable tax rate should be used to measure a deferred tax asset for anoperating loss carryforward that is available to offset future taxable income.For reducing the deferred Tax asset Valuation Allowance should be established.

Valuation Allowance = $100000*30% =$30,000

Therefore, Valuation Allowance should be recorded to reduce Deferrred Tax Asset i.e. $54,000 - $30,000 = $24,000

3) Answer A) is correct .

Explanation

Depreciation = 120,000

Add Provision for Doubtful Debts = 80,000

Rent = 200,000

Total Expenses = 400,000

When the Local currency of the subsidiary is the functional Currency it is very important to translate in the reporting Currency.Revenues and expenses are translated at the average exchange rate of .44 .Therefore, Total expenses should be translated at the average exchange rate of .44 i.e. (400,000 *.44) = $176,000