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

	Stated at
	Current Rates		Historical Rates
Accounts receivable, current	$	271,000	$	291,000
Accounts receivable, long term		122,000		133,000
Prepaid insurance		61,000		63,000
Goodwill		89,000		94,000
	$	543,000	$	581,000

1.

Required information

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

$550,000.

$543,000.

$561,000.

$548,000.

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2.

Required information

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

$543,000.

$548,000.

$550,000.

$561,000.