Certain balance sheet accounts of a foreign subsidiary of Rowan,Inc.(Rowan)at December 31,20X6,have been translated into U.S.dollars as follows:

The subsidiary's functional currency is the currency of the country in which it is located.
What total amount should be included in Rowan's December 31,20X6 consolidated balance sheet for the above accounts?
A) $450,000
B) $475,000
C) $455,000
D) $495,000

Question

Certain balance sheet accounts of a foreign subsidiary of Rowan,Inc.(Rowan)at December 31,20X6,have been translated into U.S.dollars as follows:

The subsidiary's functional currency is the currency of the country in which it is located.
What total amount should be included in Rowan's December 31,20X6 consolidated balance sheet for the above accounts?
A) $450,000 
B) $475,000 
C) $455,000 
D) $495,000

Quizplus · Accepted Answer

The total amount to be included in Rowan's December 31, 20X6 consolidated balance sheet is the sum of the translated balance sheet accounts, which is $400,000 + $60,000 + $15,000 = $475,000. Therefore, the best choice is B.

Certain Balance Sheet Accounts of a Foreign Subsidiary of Rowan,Inc