Suppose the German Subsidiary of a U

question 36

Multiple Choice

Suppose the German subsidiary of a U.S.firm had current assets of €3 million,fixed assets of €6 million and current liabilities of €3 million both at the start and at the end of the year.There are no long-term liabilities.If the euro depreciated during that year from $.48 to $.38,the FASB-52 translation gain loss.to be included in the parent company's equity account is

• A)0,since the current assets and current liabilities cancel
• B)+$300,000
• C)-$350,000
• D)-$600,000

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Definitions:

Conflict

A disagreement over issues of substance and/or an emotional antagonism.

Change Leadership

The process and techniques used by individuals in an organization to inspire and lead others through significant transformations.

Learning Organisations

Organizations that have developed the capability to continuously learn, adapt, and change through the collection, management, and utilization of knowledge.

Competitive

Relating to or characterized by rivalry between entities such as businesses or individuals striving for the same objective or market dominance.