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 local currency,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 local currency,what total should be included in Parker's consolidated balance sheet at December 31,2008,for the above items?

Quizplus · Accepted Answer

The total of the restated balance sheet accounts is $418,000 ($300,000 + $68,000 + $50,000). Since the functional currency of the subsidiary is the local currency, the balance sheet accounts should be translated using the current exchange rate. Therefore, the consolidated balance sheet should show $418,000 for these items.

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