If Maker Is Considered to Be a Self-Sustaining Foreign Subsidiary

question 28

Multiple Choice

If Maker is considered to be a self-sustaining foreign subsidiary (i.e., the functional currency of the foreign operation is different than the parent) , what amount will be shown for capital assets (net) on its translated Canadian dollar financial statements as at December 31, 2016?

• A) $168,000.
• B) $169,600.
• C) $170,000.
• D)$170,400.

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Definitions:

Consumer Surplus

The difference between the maximum amount that consumers are willing to pay for a good or service and the amount they actually pay.

Consumer Surplus

The benefit obtained by consumers because they are able to purchase a product for a price that is less than the maximum price that they are willing to pay.

Equilibrium Price

The rate at which the amount of products offered matches the amount of products consumers want.

Unregulated Market

A market where the government does not impose price controls, quotas, or other restrictions on the forces of supply and demand.