Patents Are on the Books of a British Subsidiary of a U.S

question 34

Multiple Choice

Patents are on the books of a British subsidiary of a U.S. firm at a value of 50,000 pounds. The patents were acquired in 20X3 when the exchange rate was 1 pound = $1.50. The British subsidiary was acquired by the U.S. firm in 20X0 when the exchange rate was 1 pound = $1.40. The exchange rate on December 31, 20X4, the date of the most current balance sheet, is 1 pound = $1.55. The average rate of exchange for 20X4 is $1.53. What exchange rate will be used to remeasure patents for the consolidated statements dated December 31, 20X4?

• A) $1.40
• B) $1.50
• C) $1.53
• D) $1.55

---

Definitions:

Civil Religion Theory

A concept that suggests the existence of a non-sectarian quasi-religious faith in the United States with sacred symbols drawn from national history, creating a cohesive social bond among Americans.

Desecularization Thesis

The theory that opposes the secularization thesis, proposing that instead of becoming less religious, the world is experiencing a resurgence of religious beliefs and practices.

Secularization Thesis

The theory that as societies progress, particularly through modernization and rationalization, religious authority diminishes in all aspects of social life and governance.

Memorizing Bible Verses

The practice of committing specific passages from the Bible to memory, often for religious or educational purposes.