Assuming the functional currency of the subsidiary is the local currency, what total should be included in Parker's consolidated balance sheet at December 31, 2018, for the above items?
A) $407,500.
B) $418,000.
C) $396,000.
D) $403,500.
E) $398,500.

Question

Quizplus · Accepted Answer

- Cash and receivables: $183,000 + $75,000 = $258,000
- Inventory: $90,000
- Land: $10,000
- Property, plant, and equipment: $150,000
- Accumulated depreciation: ($50,000 + $3,000) = $53,000
- Total: $455,000 - $37,000 (due to unrealized profit on inventory) = $418,000.

Assuming the Functional Currency of the Subsidiary Is the Local