Note: This Is a Kaplan CPA Review Question

question 55

Multiple Choice

Note: This is a Kaplan CPA Review Question
Certain balance sheet accounts of a foreign subsidiary of Rowan, Inc. (Rowan) at December 31, 20X6, have been translated into U.S. dollars as follows:
The subsidiary's functional currency is the currency of the country in which it is located.
What total amount should be included in Rowan's December 31, 20X6 consolidated balance sheet for the above accounts?

• A) $450,000
• B) $475,000
• C) $455,000
• D) $495,000

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Definitions:

Law

A set of rules created by the governing body of a society to maintain harmony, stability, and justice in that society.

Seller's Statement

A document provided by a seller detailing the financial transactions, including the sale price, applicable fees, and adjustments, involved in the sale of property or assets.

Anticipatory Breach

A breach that occurs when a party to a contract either expresses or clearly implies an intention not to perform the contract even before being required to act. Also called constructive breach.

Takamine Guitars

A Japanese company known for manufacturing acoustic guitars and pioneering the development of the acoustic-electric guitar.