Certain Balance Sheet Accounts of a Foreign Subsidiary of Parker

question 21

Multiple Choice

Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2013, have been restated into U.S. dollars as follows: $\begin{array}{lrr}&\text { Restated at }\\&\text { Current Rates } & \text { Historical Rates } \\\text { Cash } & \$ 47,500 & \$ 45,000 \\\text { Accounts receivable } & 95,000 & 90,000 \\\text { Inventory, at market } & 76,000 & 72,000 \\\text { Land } & 57,000 & 54,000 \\\text { Equipment (net) } & \underline{142,500} & 135,000 \\\quad \text { Total } & \$ 418,000 & \$ 396,000\end{array}$ 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, 2013, for the above items?

• A)$407,500.
• B)$418,000.
• C)$396,000.
• D)$403,500.
• E)$398,500.

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Definitions:

Relative Frequency

The ratio of the number of times a value occurs to the total number of observations in a dataset.

Population

The entire group of individuals or items from which samples may be drawn for statistical analysis.

Probability

The likelihood of an event or outcome occurring, calculated as the ratio of favorable cases to the total number of possible cases.

Freshmen Class

A group or cohort of students who are in their first year of secondary or post-secondary education.