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Which one of the following statements would justify this conclusion?

Which one of the following statements would justify this conclusion?

A) Most of the subsidiary’s sales and purchases were with companies in the U.S.

B) Dilty’s functional currency is the dollar and Dilty is the parent.

C) Dilty’s other subsidiaries all had the dollar as their functional currency.

D) Generally accepted accounting principles require that the subsidiary’s functional currency must be the dollar if consolidated financial statements are to be prepared.

E) Dilty is located in the U.S.

Answer: A 

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For a foreign subsidiary that uses the U.S. dollar as its functional currency, what method is requiredto ready the financial statements for consolidation?

What must Dilty do to ready the subsidiary’s financial statements for consolidation?