The Appropriate Exchange Rate for Translating a Plant Asset in the Balance

question 15

Multiple Choice

The appropriate exchange rate for translating a plant asset in the balance sheet of a foreign subsidiary in which the functional currency is the U.S. dollar is the:

• A) current exchange rate.
• B) average exchange rate for the current year.
• C) historical exchange rate in effect when the plant asset was acquired or the date of acquisition, whichever is later.
• D) forward rate.