1. Certain balance sheet accounts of a foreign subsidiary of the Crater Co. had been stated in U.S. dollars as follows:

   	Stated at
   	Current Rates				Historical Rates
   Accounts receivablecurrent	$	310,000			$	324,000
   Accounts receivablelong term		150,000				167,000
   Prepaid insurance		90,000				98,000
   Goodwill		115,000				121,000
   Totals	$	665,000			$	710,000

   If the subsidiarys local currency is its functional currency, what total amount should be included in Craters balance sheet in U.S. dollars?

   		$679,000.
   		$696,000.
   		$665,000.
   		$687,000.
   		$688,000.