The Assets Listed Below of a Foreign Subsidiary Have Been

question 36

Multiple Choice

The assets listed below of a foreign subsidiary have been converted to U.S.dollars at both current and historical exchange rates.Assuming that the local currency of the foreign subsidiary is the functional currency,what total amount should appear for these assets on the U.S.company's consolidated balance sheet?

• A) $636,000
• B) $648,000
• C) $708,000
• D) $960,000

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Definitions:

Dissociate

To separate or remove oneself from an association, relationship, or partnership.

Partnership

Two or more individuals engaging in a legal business structure, where management roles and profits are shared.

Dissolution

The closing down or ending of an entity or agreement, such as the dissolution of a company or marriage.

Partnership

A business structure where two or more individuals manage and operate a business in accordance with terms set out in a partnership agreement.