Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2011, have been restated into U.S. dollars as follows:
-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, 2011, for the above items?

Question

Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2011, have been restated into U.S. dollars as follows: 
-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, 2011, for the above items?

Quizplus · Accepted Answer

The total amount included in Parker's consolidated balance sheet should be $407,500, as this reflects the correct conversion and consolidation of the subsidiary's financials into the parent company's balance sheet using the U.S. dollar as the functional currency.

Certain Balance Sheet Accounts of a Foreign Subsidiary of Parker