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	$	160,000			$	180,000
Accounts receivable, long term		130,000				140,000
Land		65,000				70,000
Patents		95,000				100,000
	$	515,000			$	555,000

This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?

Answer rating: 100% (QA)

Since the US dollar is a functional currency it needs to be weighed ag... View the full answer