Which of the statements is correct aboutcurrent rate method?

A.We need to translate balance sheet first and then income statement

B.We use current rate method when subsidiary's functional currency is its local currency in a foreign country

C.We translate stockholders' equity using current rate

D.We recognize currency exchange gain/loss in income statement.

To convert an account balance from a foreign currency to USD, usually we just multiply the number in the foreign currency by a certain exchange rate (current rate, historical rate, or average rate) depending on the method and type of accounts. As an exception to this process, which of the following accountscannotbe translated by multiplying a single exchange rate no matter which method you use?

A.Assets

B.Liabilities

C.Contributed capital (Common Stock & APIC)

D.Retained Earnings

Which translation method do we use when the subsidiary is in a country with highly inflationary economy

A.Current rate method

B.Temporal method

C.Depending on subsidiary's functional currency

D.Neither method

After translation under temporal method, Company ABC's Retained Earnings_12/31, Dividends, and Retained Earnings_1/1are respectively $200,000, $50,000, and $100,000. Which is the Net Income in US$?

A.$150,000

B.$50,000

C.$250,000

D.-$50,000