Heiner Company

question 26

Multiple Choice

Heiner Company. converts its foreign subsidiary financial statements using the translation process. The company's subsidiary in the Czech Republic reported the following for 2011: revenues and expenses of 25,000,000 and 18,500,000 koruna, respectively, earned or incurred evenly throughout the year, dividends of 1,500,000 koruna were paid during the year. The following exchange rates are available:

Translated net income for 2011 is

• A) $148,500.
• B) $227,500.
• C) $175,000.
• D) $195,000.

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Definitions:

Arboreal

Relating to or resembling a tree or life in the trees; often used to describe animals that live in trees.

Diurnal

Active during the day and at rest at night.

Hominoids

A term referring to the group of primates that includes all the great apes and humans.

Lemurs

A group of primates known for their large eyes and tail, native exclusively to the island of Madagascar and surrounding areas. They are noted for their diverse species and ecological roles in their habitats.