The Eliminations and Adjustment Entries Necessary to Consolidate the Parent

The eliminations and adjustment entries necessary to consolidate the parent and subsidiary financial statements are translated as follows:

A) all balances, profits, and losses at the current exchange rate on the consolidation date
B) intercompany balances translate at the rates used for other accounts, profits and losses translate at an average rate
C) Intercompany balances translate at the current rates, profits and losses translate at an average rate
D) none of the above are correct