Certain balance sheet accounts of a foreign subsidiary of the Tulip Co. had been stated in U.S. dollars as follows: If the U.S. dollar is the functional currency of this subsidiary, 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 U.S. dollar is the functional currency of this subsidiary, 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 the Dollar is the Functional Currency, Current Rates Used for Receivables at their Historical Rate ($280,000 + $140,000 + $77,000 + $119,000) = $616,000

Certain Balance Sheet Accounts of a Foreign Subsidiary of the Tulip