Elan,a USCorporation,completed the December 31,20X8,foreign Currency Translation of Its 70 Percent

question 5

Multiple Choice

Elan,a U.S.corporation,completed the December 31,20X8,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 20X8 and paid dividends of 50,000 Swiss francs on September 1,20X8.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 Investment in Swiss subsidiary account at December 31,20X8,is:

• A)$1,881,050.
• B)$1,916,050.
• C)$1,923,950.
• D)$2,051,500.

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Definitions:

Concealment of Random Allocation

A technique used in randomized controlled trials to prevent selection bias by concealing the allocation sequence from those assigning participants to intervention groups.

Intervention Group

A group in a scientific study that receives the treatment or intervention being tested, as opposed to a control group which does not.

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is then used as a benchmark to measure how the other tested subjects do.

Masking

A method used in research where the participants and/or researchers are unaware of which individuals are in the control group and which are in the experimental group, to prevent bias.