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:

Motor Cortex

The area of the brain responsible for the planning, control, and execution of voluntary movements.

Postcentral Gyrus

The region in the parietal lobe of the brain where the primary somatosensory cortex is located, responsible for processing tactile information.

Broca's Area

Broca's area is a region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.

Produce Language

The capacity to generate words, sentences, and discourse to communicate thoughts, ideas, and emotions.