Question
The December 31, 2008, balance sheet of the Berlin Company, a wholly owned subsidiary of a U.S. company, showed its office building in central Berlin
The December 31, 2008, balance sheet of the Berlin Company, a wholly owned subsidiary of a U.S. company, showed its office building in central Berlin at Euro 1 due to accelerated depreciation which was allowed by the German income tax system and credited to the asset account. The building had been purchased for 500,000 in 2003, when $1 was worth 3.2. It has an estimated useful life of 40 years and no savage value. The company considers as its functional currency. On December 31, 2008, $1 = 1.8. In the consolidated balance sheet at December 31, 2008, the Berlin building should be stated at a cost of how much?
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