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

question 25

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. Assuming the pound is the functional currency of the subsidiary, what exchange rate will be used to translate patents for the consolidated statements dated December 31, 20X4?

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

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Definitions:

Confrontation

A communication strategy involving directly addressing an issue, behavior, or problem with someone in a straightforward manner.

Substance Abuse Disorders

A category of mental health disorders characterized by the excessive and harmful use of substances, including drugs and alcohol, leading to significant impairment or distress.

Counseling Technique

Various methods and approaches used by therapists and counselors to help individuals overcome personal, social, or psychological problems and difficulties.

Psychiatric Problem

Any disorder of the mind that significantly interferes with an individual's ability to function in life, encompassing a wide range of issues including mood disorders, anxiety disorders, and schizophrenia.