Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiary's functional currency was the U.S. dollar.

Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiary's functional currency was the U.S. dollar.

Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiary's functional currency was the U.S. dollar.

1. Which one of the following statements would justify this conclusion? 

Answer. Most of the subsidiary's sales and purchases were with companies in the U.S.

2. What must Dilty do to ready the subsidiary's financial statements for consolidation? 

Answer. Re-measure them