REFERENCE: Ref.10_09
Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31,2008,have been restated into U.S.dollars as follows:
SHAPE \* MERGEFORMAT

-Assuming the functional currency of the subsidiary is the U.S.dollar,what total should be included in Parker's consolidated balance sheet at December 31,2008,for the above items?

Question

REFERENCE: Ref.10_09
Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31,2008,have been restated into U.S.dollars as follows:
SHAPE \* MERGEFORMAT
 
-Assuming the functional currency of the subsidiary is the U.S.dollar,what total should be included in Parker's consolidated balance sheet at December 31,2008,for the above items?

Quizplus · Accepted Answer

The correct answer is A because the total amount that should be included in Parker's consolidated balance sheet at December 31, 2008, for the above items is $407,500. This amount is calculated by adding the following amounts:* Cash and cash equivalents: $100,000* Accounts receivable: $150,000* Inventory: $100,000* Prepaid expenses: $25,000* Property, plant, and equipment: $100,000* Accumulated depreciation: ($27,500)The total of these amounts is $407,500.

REFERENCE: Ref.10_09 Certain Balance Sheet Accounts of a Foreign Subsidiary of Parker