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REFERENCE: Ref.10_08 Perez Company,a Mexican Subsidiary of a U.S.company,sold Equipment Costing 200,000

question 83

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REFERENCE: Ref.10_08
Perez Company,a Mexican subsidiary of a U.S.company,sold equipment costing 200,000 pesos with accumulated depreciation of 75,000 pesos for 140,000 pesos on March 1,2009.The equipment was purchased on January 1,2008,when the exchange rate for the peso was $.11.Relevant exchange rates for the peso are as follows:
SHAPE \* MERGEFORMAT
$REFERENCE: Ref.10_08 Perez Company,a Mexican subsidiary of a U.S.company,sold equipment costing 200,000 pesos with accumulated depreciation of 75,000 pesos for 140,000 pesos on March 1,2009.The equipment was purchased on January 1,2008,when the exchange rate for the peso was $.11.Relevant exchange rates for the peso are as follows: SHAPE \* MERGEFORMAT -The financial statements for Perez are remeasured by its U.S.parent.What amount of gain or loss would be reported in its translated income statement? A) $1,530. B) $1,575. C) $1,465. D) $1,090. E) $1,650.$
-The financial statements for Perez are remeasured by its U.S.parent.What amount of gain or loss would be reported in its translated income statement?

Definitions:

Beta Coefficient

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates more volatility than the market.

One-Factor APT

A model that describes financial markets and attempts to predict the returns of securities with a single factor, usually related to economic risk.

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating volatility.

Factor Portfolio

A portfolio constructed to have a specific sensitivity to certain underlying factors that are expected to influence returns, such as size, value, or momentum.