Business, 19.05.2021 16:10 serenityarts123
Nichols Company owns 90% of the capital stock of a foreign subsidiary located in Ireland. As a result of translating the subsidiary's accounts, a debit of $160,000 was needed in the translation adjustments account so that the foreign subsidiary's debits and credits were equal in U. S. dollars. How should Nichols report its translation adjustments on its consolidated financial statements?
A) As a $144,000 increase in the stockholders' equity section of the balance sheet.
B) As a $144,000 reduction in consolidated comprehensive net income.
C) As a $160,000 debit in stockholders' equity section of the balance sheet.
D) As a $160,000 reduction in consolidated comprehensive net income.
Answers: 1
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Nichols Company owns 90% of the capital stock of a foreign subsidiary located in Ireland. As a resul...
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