The Following Balance Sheet Accounts of a Foreign Subsidiary at December

question 6

Multiple Choice

The following balance sheet accounts of a foreign subsidiary at December 31, 2014, have been translated into Canadian dollars as follows: $\begin{array}{lrrr}&\text { Translated at }\\&\text { Current Rates }&\text {Historical Rates }\\\text { Accounts receivable, current } & \$ 600,000 & \$ 660,000 \\\text { Accounts receivable, long-term } & 300,000 & 324,000 \\\text { Inventories carried at market } & 180,000 & 198,000 \\\text { Goodwill } & 190,000 & 220,000\\&\$1,270,000&\$1,402,000\end{array}$
What total should be included in the translated balance sheet at December 31, 2014 for the above items? Assume the Canadian dollar is the functional currency.

• A)$1,270,000
• B)$1,288,000
• C)$1,300,000
• D)$1,354,000

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Definitions:

Political Victories

Achievements in the political arena, such as winning elections or successfully passing legislation.

Collective Action Problem

A situation where individuals in a group have difficulty achieving a common goal due to conflicting self-interests.

Smaller Groups

Refers to subsets within a larger population, often used in statistics, sociology, or market analysis to denote groups with specific characteristics or interests.

Marginal Costs

The cost added by producing one extra item of a product, essentially the same as marginal cost but rephrased for clarity.