The primary goal behind consolidating financial statements of a controlled subsidiary is:

Select one:

a$.$ assuring that the subsidiary financial statements are the same under the temporal method or the current rate method

b$.$ assuring that the individual nature of the subsidiary entity is not lost in the consolidation

c$.$ representing the conversion of statements at the historical exchange rate

d$.$ representing the company's underlying economic condition

Exchange gains or losses from remeasurement appear:

Select one:

a$.$ in the continuing operations section of the consolidated income statement

b$.$ as an extraordinary item on the consolidated income statement

c$.$ as other comprehensive income typically reported in a statement of stockholders' equity

d$.$ as an adjustment to the beginning balance of retained earnings on the consolidated Statement of retained earnings

Selvey Inc. is a wholly$-$owned subsidiary of Parsfield Incorporated, a U$.$S$.$ firm. The country where Selvey operates is

determined to have a highly inflationary economy according to GAAP definitions. Therefore, for purposes of preparing

consolidated financial statements, the functional currency is:

Select one:

a$.$ its reporting currency.

b$.$ its current rate method currency.

c$.$ the U$.$S$.$ dollar.

d$.$ its local currency.