The adjustment resulting from the remeasurement of an entity operating in a highly inflationary environment would appear
A)in the stockholders' equity section of the balance sheet.
B)as a component of other comprehensive income.
C)as an ordinary income statement item.
D)as an extraordinary item on the income statement.

Question

Quizplus · Accepted Answer

If a foreign subsidiary operates in a highly inflationary economy, the remeasurement method is used. When the remeasurement method is used, gains or losses resulting from the remeasurement are included in income as ordinary income.

The Adjustment Resulting from the Remeasurement of an Entity Operating