Platt Corporation acquired 80% of the outstanding common stock of Smolt Company, a foreign subsidiary. In the preparation of consolidated financial statements, the paid-in capital of Smolt is translated from the foreign functional currency to U.S. dollars at the:

Question

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The paid-in capital of a foreign subsidiary is translated at the exchange rate effective on the date the parent acquired the subsidiary's common stock.

Platt Corporation Acquired 80% of the Outstanding Common Stock of Smolt