Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Current RatesHistorical RatesAccounts Receivable, current$200000$220000Accounts Receivable, long term100000110000Land5000055000Patents8000085000Total$430000$470000This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items? Choose the correct.a. $430,000.b. $435,000.c. $440,000.d. $450,000

Consolidated financial statements: These financial statements are consolidated financial statements…

Answered: Certain balance sheet accounts of a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:

	Current Rates	Historical Rates
Accounts Receivable, current	$200000	$220000
Accounts Receivable, long term	100000	110000
Land	50000	55000
Patents	80000	85000
Total	$430000	$470000

This subsidiary’s functional currency is a foreign currency. What total should Orchid’s balance sheet include for the preceding items? Choose the correct.
a. $430,000.
b. $435,000.
c. $440,000.
d. $450,000

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