Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2013, have been restated into U.S. dollars as follows: If the current rate used to restate these amounts is $.95, what was the average historical rate used to arrive at the total amount for historical rates?
A) $0.9000.
B) $1.0000.
C) $0.9500.
D) $0.9474.
E) $1.0556.

Question

Certain balance sheet accounts of a foreign subsidiary of Parker Company at December 31, 2013, have been restated into U.S. dollars as follows:  If the current rate used to restate these amounts is $.95, what was the average historical rate used to arrive at the total amount for historical rates?
A) $0.9000. 
B) $1.0000. 
C) $0.9500. 
D) $0.9474. 
E) $1.0556.

Quizplus · Accepted Answer

$418,000/$.95 = $440,000; $396,000/$440,000 = $.90

Certain Balance Sheet Accounts of a Foreign Subsidiary of Parker