Round to the nearest 1

Kent is a Foreign British subsidiary (in the UK) of a U.S. parent company. Kent's functional currency is the foreign British Pound. The following exchange rates were in effect during 2008:

1 January 2008- 1 Pound= 9.834 $

30 June 2008- 1 Pound = 9.678 $

31 December 2008- 1 Pound = 9.120 $

Weighted Average rate for the year 2008 - 1 Pound= 9.600 $

Weighted Average rate for last quarter in the year 2008- 1 Pound= 9.540 $

On December 31, 2008, Kent had Property, plant and equipment (PPE) for 500,000 carried at fair value derived on 30/06/2008. The PPE was purchased on 1 January 2008 for 480,000. What amount (rounded) would have been included for this subsidiary in calculating consolidated translated PPE?

Select one:

a. None of the answers is correct

b. $4,917,000

c. $4,560,000

d. $4,720,320

e. $4,839,000

Certain balance sheet accounts of a Foreign Subsidiary of the Ghanem Company a Kuwaiti-Based Parent- had been translated into Kuwaiti Dinars as follows

	Translated to KD using
	Current Rate (closing)	Historical (Actual Rate)
Accrued Revenues	KD 9,600,000	KD 9,840,000
Unearned revenue	KD 1,440,000	KD 1,488,000
Trademark (carried at Cost)	KD 2,640,000	KD 2,736,000

If the Foreign Currency is the functional currency of this subsidiary, what total should have been included in the translated balance sheet for the preceding items?

Select one:

a. KD 13,776,000

b. KD 13,920,000

c. KD 14,064,000

d. KD 13,860,000

e. None of the answers is correct