A Foreign Subsidiary of Dallas Jeans Corp What Amount Should Be Included as Total Assets on Dallas

question 72

Multiple Choice

A foreign subsidiary of Dallas Jeans Corp.(a U.S.firm) has certain balance sheet accounts on December 31, 2019.The functional currency and currency of record is the peso and the parent's books are kept in U.S.dollars.Information relating to these accounts in U.S.dollars is as follows: ?

$$\begin{array} { l r r } & { \text { Re-measured at } } \\& \text { Current Rate } & \text { Historical Rate } \\\text { Accounts Receivable } & \$ 175,000 & \$ 190,000 \\\text { Inventories }& 400,000 & 450,000 \\ \text { Prepaid Insurance } & 40,000 & 45,000 \\\text { Land }& 30,000 & 100,000\end{array}$$
What amount should be included as total assets on Dallas Jean's balance sheet on December 31, 2019 as the result of the above information?

• A)$645,000
• B)$765,000
• C)$770,000
• D)$785,000

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Definitions:

Capital Allocation Line

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Opportunity Set

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