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

	Stated at
	Current Rates				Historical Rates
Accounts receivable, current	$	185,000			$	205,000
Accounts receivable, long term		144,000				152,000
Land		72,000				75,000
Patents		101,000				106,000
	$	502,000			$	538,000

A) This subsidiarys functional currency is a foreign currency. What total should Orchids balance sheet include for the preceding items?

Multiple Choice

• $518,000.

• $502,000.

• $507,000.

• $510,000.

B) This subsidiarys functional currency is the U.S. dollar. What total should Orchids balance sheet include for the preceding items?

Multiple Choice

• $510,000.

• $518,000.

• $502,000.

• $507,000.