Which of the following foreign subsidiary accounts would be translated into U.S. dollars using the historical exchange
Question:
Which of the following foreign subsidiary accounts would be translated into U.S. dollars using the historical exchange rate?
Select one:
a.Plant assets
b.Bonds payable
c.Capital stock
d.Bond Premium amortization
8- Pat, a U.S. Corporation, made a long-term, dollar-denominated loan of $600,000 to its British subsidiary on January 1, 2016 when the exchange rate for British pounds was $1.53. If the subsidiary’s functional currency is its local currency, this transaction is a foreign currency transaction of:
Select one:
a.The parent company but not the subsidiary
b.The subsidiary company but not the parent
c.Both the subsidiary and the parent
d.Neither the subsidiary nor the parent
9- An exchange gain on a long-term loan of a U.S. parent to its British subsidiary whose functional currency is the British pound is:
Select one:
a.Recognized in consolidated income in the current year
b.Deferred until the loan is settled
c.Treated as an equity adjustment from translation
d.Treated as an equity adjustment from remeasurement
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith