Certain balance sheet accounts of a foreign subsidiary of the Tulip Co. had been stated in U.S. dollars as follows: If the subsidiary's local currency is its functional currency, 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 subsidiary's local currency is its functional currency, 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 LC is the Functional Currency, Current Rates Used for All Items = $602,000

Certain Balance Sheet Accounts of a Foreign Subsidiary of the Tulip