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ZURN Inc. starts a subsidiary in a foreign country on January 1, 2009. The foreign subsidiary reports the 12/31/09 trial balance below, expressed in the
ZURN Inc. starts a subsidiary in a foreign country on January 1, 2009. The foreign subsidiary reports the 12/31/09 trial balance below, expressed in the foreign currency (SF). Credit Debit 7,600 11,200 23,000 2,300 3,500 12/31/2009 Trial Balance (SF) Cash Accounts Receivable Equipment (purchased 1/8/09) Accumulated Depr Land (purchased 1/1/09) Accounts Payable Notes Payable (issued 1/3/09) Common Stock (issued 1/1/09) Dividends Paid (10/1/09) Sales Salary Expense Depreciation Expense Miscellaneous Expense Totals 5,600 7,800 10,000 7,000 45,800 7,880 2,300 9,020 71,500 71,500 Exchange Rates (per SF) 1/1/2009 1/3/2009 1/8/2009 10/1/2009 12/31/2009 Weighted Average for 2009 $1.71 $1.69 $1.66 $1.60 $1.64 $1.65 If the foreign subsidiary's functional currency is US dollar, what method should be used to translate the foreign subsidiary's financial statements? Book value method Fair value method Current rate method Temporal method
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