Elan,a U.S.corporation,completed the December 31,2008,foreign currency translation of its 70 percent owned Swiss subsidiary's trial balance using the current rate method.The translation resulted in a debit adjustment of $25,000.The subsidiary had reported net income of 800,000 Swiss francs for 2008 and paid dividends of 50,000 Swiss francs on September 1,2008.The translation rates for the year were:
The January 1 balance of the Investment in the Swiss subsidiary account was $1,600,000.Elan acquired its interest in the Swiss subsidiary at book value with no differential or goodwill recorded at acquisition.

-Elan's Investment in Swiss subsidiary account at December 31,2008,is:
A)$1,881,050.
B)$1,916,050.
C)$1,923,950.
D)$2,051,500.

Question

Elan,a U.S.corporation,completed the December 31,2008,foreign currency translation of its 70 percent owned Swiss subsidiary's trial balance using the current rate method.The translation resulted in a debit adjustment of $25,000.The subsidiary had reported net income of 800,000 Swiss francs for 2008 and paid dividends of 50,000 Swiss francs on September 1,2008.The translation rates for the year were:
The January 1 balance of the Investment in the Swiss subsidiary account was $1,600,000.Elan acquired its interest in the Swiss subsidiary at book value with no differential or goodwill recorded at acquisition.
 
-Elan's Investment in Swiss subsidiary account at December 31,2008,is:
A)$1,881,050. 
B)$1,916,050. 
C)$1,923,950. 
D)$2,051,500.

Quizplus · Accepted Answer

The correct investment value is $1,881,050, which is likely derived from the financial records or calculations specific to Elan's investment in the Swiss subsidiary as of December 31, 2008.

Elan,a USCorporation,completed the December 31,2008,foreign Currency Translation of Its 70 Percent