Delfi Entity (DE), with the Functional and Presentation Currency of the US

Multiple Choice

Delfi Entity (DE) , with the functional and presentation currency of the US dollar, established a Canadian subsidiary, Northern Entity (NE) , an assembly plant located on the Canadian side of Niagara Falls. Other than paying its employees for labor in the Canadian dollars (local currency) , all of NE's transactions are with the parent. NE is financed mainly by the parent. DE provides the subsidiary with any necessary parts and equipment. What is NE's functional currency?

A) the Canadian dollar
B) the US dollar
C) NE can choose any currency it wants
D) more information is needed to determine NE's functional currency