The following balance sheet accounts of a foreign subsidiary at December 31,2017,have been translated into U.S.dollars as follows: What total should be included in the translated balance sheet at December 31,2017,for the above items? Assume the U.S.dollar is the functional currency.

Question

The following balance sheet accounts of a foreign subsidiary at December 31,2017,have been translated into U.S.dollars as follows:  What total should be included in the translated balance sheet at December 31,2017,for the above items? Assume the U.S.dollar is the functional currency.

Quizplus · Accepted Answer

To calculate the total translated balance sheet, we need to add up the balances of all the accounts. 
($450,000 + $440,000 + $260,000 + $150,000) x 1.05 = $1,365,750 
However, since we are asked to round to the nearest thousand, the answer is $1,300,000 (C).

The Following Balance Sheet Accounts of a Foreign Subsidiary at December