The historical approach or temporal method transforms a foreign subsidiary's currency into the parent company's currency.
The historical approach or temporal method transforms a foreign subsidiary's currency into the parent company's currency. When the local currency of the subsidiary differs from the parent company's currency, this method of translating a foreign currency is employed.
The temporal method requires translation of the income statement to come first, then the balance sheet. The income statement and the retained earnings portion of equity on the balance sheet must be consistent in order for the temporal technique to be accurate.
The majority of assets and liabilities must be assessed using the exchange rate that was in force at the time that a specific asset or obligation was created under the temporal method.
Therefore, the answer is $457,000.
To learn more about temporal method refer to:
https://brainly.com/question/22785445
#SPJ4
