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

question 71

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 dollar is the functional currency of the subsidiary, 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

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Definitions:

Emotional Intelligence (EQ)

The ability to understand and manage one's own emotions, and to be empathetic and effective in handling interpersonal relationships.

Social Skills

The abilities that facilitate interaction and communication with others, allowing for effective participation in social settings.

Emotional Maturity

The ability to understand, manage, and express one’s emotions in a healthy and productive manner.

Laissez-Faire Leadership

A leadership style characterized by minimal managerial interference, where team members have the freedom to make decisions and solve problems on their own.