Elan,a U.S.corporation,completed the December 31,2008,foreign currency translation of its 70 percent owned Swiss subsidiary's trial balance using the current rate method.The translation resulted in a debit adjustment of $25,000.The subsidiary had reported net income of 800,000 Swiss francs for 2008 and paid dividends of 50,000 Swiss francs on September 1,2008.The translation rates for the year were:
The January 1 balance of the Investment in the Swiss subsidiary account was $1,600,000.Elan acquired its interest in the Swiss subsidiary at book value with no differential or goodwill recorded at acquisition.

-Elan's consolidated workpaper eliminations related to the foreign currency translation adjustment will include which entry?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Elan,a U.S.corporation,completed the December 31,2008,foreign currency translation of its 70 percent owned Swiss subsidiary's trial balance using the current rate method.The translation resulted in a debit adjustment of $25,000.The subsidiary had reported net income of 800,000 Swiss francs for 2008 and paid dividends of 50,000 Swiss francs on September 1,2008.The translation rates for the year were:
The January 1 balance of the Investment in the Swiss subsidiary account was $1,600,000.Elan acquired its interest in the Swiss subsidiary at book value with no differential or goodwill recorded at acquisition.
 
-Elan's consolidated workpaper eliminations related to the foreign currency translation adjustment will include which entry?
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The Answer of Elan,a U.S.corporation,completed the December 31,2008,foreign currency translation of its 70 percent owned Swiss subsidiary's trial balance using the current rate method.The translation resulted in a debit adjustment of $25,000.The subsidiary had reported net income of 800,000 Swiss francs for 2008 and paid dividends of 50,000 Swiss francs on September 1,2008.The translation rates for the year were:
The January 1 balance of the Investment in the Swiss subsidiary account was $1,600,000.Elan acquired its interest in the Swiss subsidiary at book value with no differential or goodwill recorded at acquisition.
 
-Elan's consolidated workpaper eliminations related to the foreign currency translation adjustment will include which entry?
A)Option A 
B)Option B 
C)Option C 
D)Option D

Elan,a USCorporation,completed the December 31,2008,foreign Currency Translation of Its 70 Percent