The value of all financing debt (notes payable, current portion of long-term debt, and long-term debt) on December 31, 2006, reported in USD is: A. $171,000,000. B. $202,500,000. C. $225,000,000.
Because the operations are independent from the parent, the current rate method will be used. All debt is considered a monetary liability and should be accounted for at the current rate. The value is 0.50 × 450,000,000 = $225,000,000
