A Danish Subsidiary of a U

question 7

Multiple Choice

A Danish subsidiary of a U.S. corporation recorded a building it purchased in 2020 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 2020.
• C) The building is worth $13,200,000 to the U.S. parent today.
• D) None of the above

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Definitions:

Unemployment Compensation

Money paid by the government to unemployed workers who meet certain eligibility requirements.

Salaried Quarters

A housing or lodging provision as part of an employment compensation package, often found in academic, military, or corporate settings.

Weekly Salary

The total amount of money earned by an employee in a week, often calculated by dividing an annual salary by 52.

Hourly Wage

Compensation paid to an employee calculated on a per-hour basis.