A Danish Subsidiary of a U

question 11

Multiple Choice

A Danish subsidiary of a U.S.corporation recorded a building it purchased in 2010 for 100,000,000 krone, when the exchange rate was $0.132/krone.The current exchange rate is $0.163/krone.Under the current rate method, how should the translated amount of the restated asset be interpreted?

• A)The U.S.parent would have to pay $16,300,000 to acquire the building today.
• B)The U.S.parent would have had to pay $13,200,000 to acquire the building in 2010.
• C)The building is worth $13,200,000 to the U.S.parent today.
• D)None of the above

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Definitions:

Africans

Refers to individuals from Africa, the second-largest continent, encompassing a wide range of cultures, ethnicities, and languages.

Slavery

A system in which individuals are owned by others, deprived of personal freedom and compelled to perform labor or services.

Resist

To oppose or strive against something, often used in the context of resisting oppression, injustice, or undesirable circumstances.

Slave Masters

Individuals or entities that owned and controlled the lives of enslaved people, a practice particularly prevalent in the American South before the Civil War.