Question
The assets listed below of a foreign subsidiary have been converted to U.S. dollars at both current and historical exchange rates. Assuming that the recording
The assets listed below of a foreign subsidiary have been converted to U.S. dollars at both current and historical exchange rates. Assuming that the recording currency of the foreign subsidiary is the functional currency, what total amount should appear for these assets on the U.S. company's consolidated balance sheet?
| Asset | Historical Rates | Current Rate | ||||||||
| Prepaid Insurance | $ | 60,000 | $ | 48,000 | ||||||
| Buildings (Net) | 480,000 | 240,000 | ||||||||
| Inventories, at Cost | 300,000 | 288,000 | ||||||||
| Investments, at Cost | 120,000 | 60,000 | ||||||||
| Total | $ | 960,000 | $ | 636,000 | ||||||
Multiple Choice
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$636,000
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$648,000
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$708,000
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$960,000
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Cost Accounting College Version
Authors: Steven M. Bragg
1st Edition
1938910702, 978-1938910708
