Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Stated at Current Rates Historical Rates Accounts receivable, current $ 276,000 $ 296,000 Accounts receivable, long term 128,000 135,000 Land 64,000 67,000 Patents 92,000 97,000 $ 560,000 $ 595,000 This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?
Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Stated at Current Rates Historical Rates Accounts receivable, current $ 276,000 $ 296,000 Accounts receivable, long term 128,000 135,000 Land 64,000 67,000 Patents 92,000 97,000 $ 560,000 $ 595,000 This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Certain
| Stated at | |||||||
| Current Rates | Historical Rates | ||||||
| $ | 276,000 | $ | 296,000 | ||||
| Accounts receivable, long term | 128,000 | 135,000 | |||||
| Land | 64,000 | 67,000 | |||||
| Patents | 92,000 | 97,000 | |||||
| $ | 560,000 | $ | 595,000 | ||||
This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?
a. $560,000.
b. $575,000.
c. $565,000.
d. $568,000.
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