Business, 19.08.2020 01:01 Nycin

A wholly-owned subsidiary of Ward, Inc. has certain expense accounts for the year ended December 31, 2015, stated in FCs as follows: FC .

Depreciation of equipment(related assets were purchased January 1, 2013) $120,000

Bad debts $80,000

Rent $200,000

The exchange rates at various dates are as follows:

Dollar equivalent 1 FC

December 31, 2015 $.40

Average for year ended 12/31/15 $.44

January 1, 2013 $.50

Assume that the FC is the subsidiary’s functional currency and that the charges to the expense accounts occurred approximately evenly during the year. Inflation is not significant. What total dollar amount should be included in Ward’s 2015 consolidated income statement to reflect these expenses?

a. $160,000

b. $168,000

c. $176,000

d. $183,200

Answers: 2

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A wholly-owned subsidiary of Ward, Inc. has certain expense accounts for the year ended December 31,...

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