please solve neatly

CAICPA adapted) EXERCISE 13-3 Multiple Choice LO 3 L04 LOS LO? LO 8 Select the best answer choice for each of the following items. 1. Perez Company's operations are unrelated to the operations of its subsidiary. Certain balance sheet accounts of the foreign subsidiary at December 31, 2014, have been translated into U.S. dollars as follows: Translated at: Historical Current Rates Rates Accounts receivable, current Accounts receivable, long-term Prepaid insurance Goodwill $200,000 130.000 50,000 100,000 $220,000 140,000 55,000 110,000 Chapter 13 Translation of Financial Statements of Foren If the accounting is in accordance with SFAS No. 52. what to sold become Exercises balance sheet December 31, 2014, for the foreningiem? () $40,000 (b) $490.000 (e) $495.000 (d) SS80,000 US dollars should be included as with the conservatism convention 2. When the functional currency of a foreign operation is the US dollar, rain losses resulting from translating Cremeasuring) foreign currency financial (a) An extraordinary item in the income statement for the period in which the (b) An ordinary item in the income statement for losses but deferred for gains (e) An ordinary item in the income statement for the period in which the rate chunga (d) A deferred item in the balance sheet 3. se December 31, 2014, balance sheet and its 2014 income statement. The functional was identified as the local currency of the foreign subsidiary. The average exchange the 2014 should be used to translate (a) Retained earnings at January 1, 2014 (b) Equipment purchased in 2014 (e) Sales for 2014 (d) Cash at December 31, 2014 4. One of the first steps in translating the financial statements of a foreign subsidiary is the identification of the functional currency of that entity. Which of the following indicates the the functional currency is the local currency of the foreign entity? (a) There is a high volume of intercompany transactions. (b) Financing is primarily denominated in the local currency. (e) Sales are mostly in the United States, or sales contracts are denominated in dollar (d) Sales prices are primarily responsive in the short term to exchange rate changes. 5. When the foreign operations are conducted in a highly inflationary economy, what my lation rates should the goodwill and accounts receivable accounts in foreign statements translated into U.S. dollars? Goodwill (a) Current (b) Historical (c) Historical (d) Current Accounts Receivable Average for year Current Historical Current (ACPapel