Aussie Ltd acquired 100% of Sing Sing Ltd (Sing Sing) on 1 July 20X0. The balance sheet of Sing Sing as at 30 June 20X1 was as follows. Balance Sheet as at 30 June 20X1

\begin{array}{c}\begin{array}{lll}\\ \text {Machinery- carrying value}\\ \text {Investment property}\\ \text { Receivables }\\ \text {Cash}\\\\\\ \end{array}\begin{array}{r}\underline{S \$} \\ 300000 \\400000 \\500000 \\600000 \\\underline{\quad\quad}\\ \underline{1800000} \\ \end{array}\begin{array}{l}\\ \text { Share capital}\\ \text { General Reserve}\\ \text { Retained earnings}\\ \text { Accounts payable}\\ \text { Income tax payable}\\\\\end{array}\begin{array}{r}\underline{S \$} \\400000 \\200000 \\1000000 \\170000 \\\underline{30000} \\\underline{1800000} \end{array}\end{array}

-Relevant exchange rates are as follows.

\begin{array}{llll}&\underline{ \text {A\$ }} &&\underline{ \text { S\$ }} \\\text { 1. July 20X0 } & 1.00 & & 1.15 \\\text { 30 June 20X1 } & 1.00 & = & 1.25 \\\text { Average 20X0-X1 } & 1.00 & = & 1.22\end{array}

If the local currency of Sing Sing is Singapore dollars and the functional currency is Australian dollars, the total assets of S$1 800,000 would translate into Australian dollars as:
A) $1 565 217.
B) $1 488 696.
C) $1 440 000.
D) $1 475 410.

When Translating from the Functional Currency into the Presentation Currency

Multiple Choice

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