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A foreign entity is a subsidiary of a us parent company and has always used the current rate method to translate its foreign financial statements on behalf of its parent company. which one of the following statements is incorrect?
a. the us dollar will be the functional currency of this company.
b. changes in exchanges rates between the subsidiary's country and the parent's country are not expected to affect the foreign entity's cash flows.
c. translation adjustments are shown in stockholders' equity as increases or decreases in other comprehensive income.
d. translation adjustments are not shown on the income statement.
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