Description Assignment Question(s): Three Questions Each Carries 5 Marks) (total Marks 15) Q1. The ...

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Description Assignment Question(s): Three Questions Each Carries 5 Marks) (total Marks 15) Q1. The following information extracted from the parent company Parent company loaned $1000 to Subsidiary with an interest rate of 5%. Parent company made a sale to Subsidiary for $500 cash. The inventory had originally cost Parent company $200. Subsidiary then sold that same inventory to an outsider for $700. Parent company made a sale to Sub for $800 cash. The inventory had originally cost Parent $300. Subsidiary has not yet sold that same inventory to an outsider. Required: Pass the elimination entries for the intercompany transactions. Answer: Q2. Explain the differences between translation and remeasurement of financial statements of a foreign subsidiary. Answer: Q3. The partnership of Ibrahim and Rawan has the following provisions: Ibrahim and Rawan receive salary allowances of SAR 50,000 and SAR 15,000, respectively. Interest is imputed at 5% on the average capital investment. Any remaining profit or loss is shared between Ibrahim and Rawan in a 3:1 ratio, respectively. Average Capital investments:Ibrahim, SAR 300,000; Rawan, SAR 150, 000 Net income SAR 300,000