A USFirm Has Total Assets Valued at £318,000 Located in London

question 23

Multiple Choice

A U.S.firm has total assets valued at £318,000 located in London.This valuation did not change from last year.Last year, the exchange rate was £.61 = $1.Today, the exchange rate is £.63 = $1.By what amount did these assets change in value on the firm's U.S.financial statements?

• A)-$16,549.57
• B)-$13,511.03
• C)-$12,248.91
• D)$13,511.03
• E)$0

---

Definitions:

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity by a specified date.

Income Tax Return

The form or forms used to report income to a federal, state, or local tax authority and to calculate taxes owed.

Form W-3

The transmittal form used to submit information on total wages paid and taxes withheld from all employees' wages to the IRS, accompanying the W-2 forms.

Wage Income

Earnings received by an employee as a result of their employment, typically in the form of a salary or wages.