Capital stock of a danish subsidiary

Reference no: EM1310862

Bowman Company reported translation adjustments in its stockholders' equity section of $2,000,000. These adjustments were added to the other items disclosed in Bowman's stockholders' equity. Bowman's translation adjustments resulted from its 80% interest in the capital stock of a Danish subsidiary. Based upon the facts presented, which of the following statements is true?

Answer

The credits in dollars on the Danish trial balance exceeded the debits in dollars by $2,000,000.
The debits in dollars on the Danish trial balance exceeded the credits in dollars by $2,000,000.
The debits in dollars on the Danish trial balance exceeded the credits in dollars by $2,500,000.
The credits in dollars on the Danish trial balance exceeded the debits in dollars by $2,500,000.

Reference no: EM1310862

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