Question #6

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 4

Status: Incorrect

Correct Answer: A

Your Answer: B

Part of Context Group: Q6-8 First in Group
Shared Context
- Assuming closing retained earnings for the year 20X8 was $110, the translation gain on the income statement would be: A) $17. B) $0. C) $27.
Question
The level of net fixed assets on the remeasured 20X8 balance sheet would be:
Answer Choices:
A. $510
B. $462
C. $480
Explanation
Net fixed assets are considered non-monetary assets. For non-monetary assets, the temporal method uses the historical rate: 600SF × 0.77$/SF = $462.
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