What must Dilty to ready the subsidiary's financial statements for consolidation? First translate them, then remeasure them. First remeasure them, then translate them. State all of the subsidiary's accounts in U.S. dollars using the exchange rate in effect at the balance sheet date. Translate them. Remeasure them. Based on local currency unit, the Du Pont formula was 12.5% = 20% times 0.625. Conversion method A shows its Du Pont formula 6.5% -= 17.35% 0.375 and method B yields 10.7% = 20% = 0.536. Which of the following is correct? Method A is current rate method while Method B is temporal method. U.S. dollar is weakened during the evaluation period. The direct exchange rate was increasing during the period. Method B's functional currency is U.S, $. None of the above is correct. On May 20, 2016, when the spot rate is $1.28/element, a U.S, company buys merchandise from a supplier in Italy, at a cost of element 100,000. the spot rate $1.25/element on July 30, the company's supplier year-end. Payment of element 100,000 is made on July 30, 2016, when the spot is $1.32/element. What is the effect on fiscal 2016 and fiscal 2017 income?(Hamlen, ch.8 MC) A U.S. company expects to buy merchandise from a Canadian supplier for approximately C$1,000,000, in the middle of April. On November 15, 2016, the company enters a forward contract locking in the U.S. dollar purchase price of C$1,000,000, for delivery on April 15, 2017. The forward qualifies as a hedge of the forecasted transaction. Delivery of the merchandise takes place on April 15, 2017, and the forward contract is closed and payment is made to the supplier. At what amount is the merchandise reported on delivery on April 15, 2017? $895,000 $905,000 $940,000 $950,000 $970,000