The following balance sheet accounts of a foreign subsidiary at December 31, 2017, have been translated into U.S. dollars as follows: Translated at Current Rates Historical RatesAccounts receivable, current $ 600,000 $ 600,000Accounts receivable, long-term 300,000 324,000Inventories carried at market 180,000 198,000Goodwill 190,000 220,000 $1,270,000 $ 1,402,000What total should be included in the translated balance sheet at December 31, 2017, for the above items? Assume the U.S. dollar is the functional currency. $1,354,000 $1,270,000 $1,288,000 $1,300,000

Accounts receivables are recorded at the current rate Inventory is recorded at the current rate…

Answered: The following balance sheet accounts of…

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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The following balance sheet accounts of a foreign subsidiary at December 31, 2017, have been translated into U.S. dollars as follows:

	Translated at
	Current Rates	Historical Rates
Accounts receivable, current	$ 600,000	$ 600,000
Accounts receivable, long-term	300,000	324,000
Inventories carried at market	180,000	198,000
Goodwill	190,000	220,000
	$1,270,000	$ 1,402,000

What total should be included in the translated balance sheet at December 31, 2017, for the above items? Assume the U.S. dollar is the functional currency.

$1,354,000

$1,270,000

$1,288,000

$1,300,000

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