Certain Balance Sheet Accounts of a Foreign Subsidiary of Parker

question 85

Multiple Choice

Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2011, have been restated into U.S. dollars as follows: Assuming the functional currency of the subsidiary is the U.S. dollar, what total should be included in Parker's consolidated balance sheet at December 31, 2011, for the above items?

• A) $407,500.
• B) $418,000.
• C) $396,000.
• D) $403,500.
• E) $398,500.

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Definitions:

Demand Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting consumer sensitivity to price changes.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Demand Inelastic

A situation where the demand for a product does not change significantly with a change in price.

Price Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in its price.