A subsidiary of Reynolds Incorporated, a U.S. company, was located in a foreign country. The...
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A subsidiary of Reynolds Incorporated, a U.S. company, was located in a foreign country. The local currency of this subsidiary was the Euro () while the functional currency of this subsidiary was the U.S. dollar. The subsidiary acquired Equipment A on January 1, 2021, for 250,000. Depreciation expense associated with Equipment A was 25,000 per year. On January 1, 2023, the subsidiary acquired Equipment B for 150,000 and Equipment B had associated depreciation expense of 10,000. The subsidiary owned no other depreciable assets. Currency exchange rates between the U.S. dollar and the Euro were as follows:
January 1, 2021
1 = $ 1.20
December 31, 2021
1 = $ 1.14
2021 Average
1 = $ 1.18
January 1, 2022
1 = $ 1.15
December 31, 2022
1 = $ 1.21
2022 Average
1 = $ 1.18
January 1, 2023
1 = $ 1.26
December 31, 2023
1 = $ 1.30
2023 Average
1 = $ 1.28
What amount would have been reported for total equipment owned by the subsidiary in Reynoldss consolidated balance sheet at December 31, 2023?
Multiple Choice
$480,000
$487,000
$520,000
$512,000
$489,000
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