This subsidiary’s functional currency is a foreign currency. What total should Rose’s balance sheet include for the preceding items?

a. $430,000.

b. $435,000.

c. $440,000.

d. $450,000.

Certain balance sheet accounts of a foreign subsidiary of Rose Company have been stated in U.S. dollars as follows:

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Accounts receivable, current Accounts receivable, long term Prepaid insurance Goodwill. Current Rates $200,000 100,000 50,000 Stated at Historical Rates $220,000 110,000 55,000 80,000 85,000 $430,000 $470,000