You are a U.S. parent and you have a subsidiary in Italy. The subsidiary's functional currency is the U.S. dollar. When you consolidate the subsidiary you will:

A.Put the subsidiary's trial balance, in euros, on the working paper and add the euro balances to the parent's U.S. dollar balances

B.Translate the subsidiary's trial balance into U.S. dollars and then do the consolidation eliminating entries

C.Remeasure the subsidiary's trial balance into U.S. dollars and then do the consolidation eliminating entries

D.Translate the subsidiary's trial balance into euros, then remeasure it into U.S. dollars, and then do the consolidation eliminating entries

You are a U.S. parent and you have a subsidiary in Italy. The subsidiary's functional currency is the euro. When you consolidate the subsidiary you will:

A.Translate the subsidiary's trial balance into U.S. dollars and then do the consolidation eliminating entries

B.Remeasure the subsidiary's trial balance into U.S. dollars and then do the consolidation eliminating entries

C.Put the subsidiary's trial balance, in euros, on the working paper and add the euro balances to the parent's U.S. dollar balances

D.Translate the subsidiary's trial balance into euros, then remeasure it into U.S. dollars, and then do the consolidation eliminating entries