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:

Medication

Substances used to treat or prevent diseases and conditions.

Ambi-

A prefix meaning both, indicating inclusivity or both sides, used in various scientific and medical terminologies.

Ana-

a prefix denoting upward, back, again, excessive, or apart.

Bi-

A prefix indicating two, double, or twice, used in various scientific and mathematical contexts.