1 Item 44 Item 44 2 points Time Remaining 2 hours 10 minutes 10 seconds 02:10:10
ID: 2395571 • Letter: 1
Question
1
Item 44
Item 44 2 points
Time Remaining 2 hours 10 minutes 10 seconds
02:10:10
Parent Company's wholly-owned subsidiary, Son Corporation, maintains its accounting records in Danish krone. However, because all of Son's branch offices are in Sweden, its functional currency is the Swedish krona. Remeasurement of Son's 20X3 financial statements resulted in a $3,200 loss, and translation of its financial statement resulted in a $2,600 loss. What amount should Parent report as a loss in its income statement for the year ended December 31, 20X3?
Multiple Choice
$3,200
$5,800
$2,600
$0
Explanation / Answer
$3,200 , Son's branch offices are in Sweden, its functional currency is the Swedish krona that means buisness operation is not dependant, therefore functional currency loss will be reported as a loss in Parent income statement
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