Certain balance sheet accounts of a foreign subsidiary of the Tulip Co. had been stated in U.S. dollars as follows: If the subsidiary's local currency is its functional currency, what total amount should be included in Tulip's balance sheet in U.S. dollars?
A)$609,000.
B)$658,000.
C)$602,000.
D)$630,000.
E)$616,000.

Question

Certain balance sheet accounts of a foreign subsidiary of the Tulip Co. had been stated in U.S. dollars as follows:  If the subsidiary's local currency is its functional currency, what total amount should be included in Tulip's balance sheet in U.S. dollars?
A)$609,000. 
B)$658,000. 
C)$602,000. 
D)$630,000. 
E)$616,000.

Quizplus · Accepted Answer

If LC is the Functional Currency, Current Rates Used for All Items = $602,000

Certain Balance Sheet Accounts of a Foreign Subsidiary of the Tulip