A Danish Subsidiary of a U

question 40

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 temporal 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