Parent Company's wholly-owned subsidiary,Son Corporation,maintains its accounting records in Danish krone.However,because all of Son's branch offices are in Sweden,its functional currency is the Swedish krona.Remeasurement of Son's 20X3 financial statements resulted in a $3,200 loss,and translation of its financial statement resulted in a $2,600 loss.What amount should Parent report as a loss in its income statement for the year ended December 31,20X3?
A)$0
B)$2,600
C)$3,200
D)$5,800

Question

Quizplus · Accepted Answer

The $3,200 remeasurement loss should be reported in the income statement, while the $2,600 translation loss is reported in other comprehensive income.

Parent Company's Wholly-Owned Subsidiary,Son Corporation,maintains Its Accounting Records in Danish