1) A parent company uses U.S. GAAP and presents its financial statements in U.S. dollars. It has a subsidiary in Singapore whose books are maintained in Singapore dollars, following IFRS.

The subsidiary's accounts are included in the consolidated financial statements of the parent:

Select one:

A.in Singapore dollars, following IFRS.

B.in Singapore dollars, following U.S. GAAP.

C.in U.S. dollars, following U.S. GAAP.

D.in U.S. dollars, following IFRS.

2) At the date of acquisition, a subsidiary's inventory (FIFO, sold in the year of acquisition) is overvalued by $600, its plant assets (10-year life, straight-line) are overvalued by $4,000, and it has previously unreported intangibles valued at $1,000 (2-year life, straight-line). Goodwill from the acquisition is not impaired. In the second year following acquisition, the subsidiary reports net income of $2,000.

Using the complete equity method, in the second year the parent reports equity in the net income of the subsidiary of:

Select one:

A.$500

B.$1,300

C.$1,900

D.$1,100

3) A wholly-owned subsidiary reports income of $5 million, other comprehensive income of $100,000, and dividends of $1 million. There are no revaluation write-offs.

Eliminating entry (C) reduces Investment in Subsidiary by:

Select one:

A.$5,000,000.

B.$4,100,000.

C.$4,000,000.

D.$5,100,000.