A USFirm Has Total Assets Valued at £890,000 Located in London

question 30

Multiple Choice

A U.S.firm has total assets valued at £890,000 located in London.This valuation did not change from last year.Last year,the exchange rate was £0.62 = $1.Today,the exchange rate is £0.68 = $1.By what amount did these assets change in value on the firm's U.S.financial statements?

• A)-$126,660.34
• B)$-113,511.03
• C)$-87,248.91
• D)$113,511.03
• E)$126,660.34

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Definitions:

True Cost

The comprehensive cost of a good or service, including all direct and indirect expenditures as well as environmental and social impacts.

Price Floors

Price Floors are legally established minimum prices for goods or services, below which they cannot be sold, usually set to protect producers.

Equilibrium

The state in a market where the quantity supplied equals the quantity demanded, and there is no incentive for price to change.

Tariff

A tax on imports.