1.The common stock of the foreign subsidiary owned by WHO has a historic value of $335,000. A recent appraisal of the stock by an independent firm estimates its current value at 12/31/19 is $375,000. What amount should be used in the consolidated worksheet at 12/31/19Translation methodRe-Measurement MethodA$335,000$375,000B$375,000$335,000C$335,000$335,000D$375,000$375,000 2.The assets listed below of a foreign subsidiary have been converted to U.S. dollars at both current and historical exchange rates. Assuming that the local currency of the foreign subsidiary is the functional currency, what total amount should appear for these assets on the U.S. Company's consolidated balance sheet?

The remeasurement method in accounting refers to the process of revaluing the desired item or any…

Answered: The common stock of the foreign…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The common stock of the foreign subsidiary owned by WHO has a historic value of $335,000. A recent appraisal of the stock by an independent firm estimates its current value at 12/31/19 is $375,000. What amount should be used in the consolidated worksheet at 12/31/19

Translation method	Re-Measurement Method
A	$335,000	$375,000
B	$375,000	$335,000
C	$335,000	$335,000
D	$375,000	$375,000

The assets listed below of a foreign subsidiary have been converted to U.S. dollars at both current and historical exchange rates. Assuming that the local currency of the foreign subsidiary is the functional currency, what total amount should appear for these assets on the U.S. Company's consolidated balance sheet?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions