The Following Information Pertains to Questions

question 28

Multiple Choice

The following information pertains to questions
ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary.
-Which of the following rates would be used to translate the company's bonds payable?

• A)$1CDN=$0.815 U.S.
• B)$1CDN=$0.8175 U.S.
• C)$1CDN=$0.8250 U.S.
• D)$1CDN=$0.83 U.S

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Definitions:

Wax

A broad group of organic substances that are solid at room temperature but melt upon heating, often used as protective coatings or in candle making.

Organic Compound

Organic compounds are chemicals that contain carbon bonded to other elements, particularly hydrogen, and are found in living organisms.

Polyunsaturated

Referring to fat molecules having more than one unsaturated carbon bond in the molecule, found in various oils and fatty acids.

Linseed Oil

An oil obtained from the dried seeds of the flax plant, used as a drying oil in paints and varnishes, as well as in wood finishes.