Elan,a USCorporation,completed the December 31,2008,foreign Currency Translation of Its 70 Percent

question 31

Multiple Choice

Elan,a U.S.corporation,completed the December 31,2008,foreign currency translation of its 70 percent owned Swiss subsidiary's trial balance using the current rate method.The translation resulted in a debit adjustment of $25,000.The subsidiary had reported net income of 800,000 Swiss francs for 2008 and paid dividends of 50,000 Swiss francs on September 1,2008.The translation rates for the year were:
The January 1 balance of the Investment in the Swiss subsidiary account was $1,600,000.Elan acquired its interest in the Swiss subsidiary at book value with no differential or goodwill recorded at acquisition.

-Elan's consolidated workpaper eliminations related to the foreign currency translation adjustment will include which entry?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Allport

Refers to Gordon Allport, an American psychologist known for his theory of personality traits.

Central Traits

Fundamental personality characteristics that are considered core to an individual's identity, according to Allport's theory.

Grace

A quality of acting with kindness, compassion, and care, often without expecting anything in return.

Psychologically Healthy

Refers to the state of mental well-being where individuals realize their own abilities, can cope with the normal stresses of life, work productively, and contribute to their community.