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Each of the following accounts has been converted to U.S. dollars from a foreign subsidia

Each of the following accounts has been converted to U.S. dollars from a foreign subsidia

 Each of the following accounts has been converted to U.S. dollars from a foreign subsidiary's financial statements. Based on the information given, determine if the U.S. dollar or a foreign currency is the functional currency of the subsidiary.

 

F = Foreign Currency

D = U.S. Dollar

N/A = Cannot be determined

 

1.Cost of goods sold was converted at a historical rate___________

 

2.Marketable debt securities carried at cost were

converted at the year-end spot rate___________

 

3.Depreciation Expense was converted at the historical

rate at the date of acquisition of the subsidiary___________

 

4.Inventories carried at their historical cost were converted

at the spot rate from year-end___________

 

5.Intangible assets were converted at the historical exchange

rate at the date of acquisition of the subsidiary___________

 

6.Deferred income tax liability was converted at the

year-end spot rate___________

 

7.Property, Plant and Equipment was converted

at the year-end spot rate___________

 

8.Accounts Payable was converted at the year-end

spot rate___________

 

9.Patents were converted at the exchange rate in place at

the date of acquisition of the subsidiary___________

 

10.Accumulated depreciation on buildings was con

Tripti 07-Dec-2019

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