Question #11 - Reading 10 Multinational Operations

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 7

Status: Correct

Correct Answer: A

Shared Context

- Jameson now computes the adjustment to WB's financial data due to Kasamatsu's payment of dividends. What is the U.S. dollar amount of this adjustment (in thousands)? A) $400. B) $414. C) $446.

Question

The carrying value of Kasamatsu's total assets on December 31, 2002, using the current rate method of accounting for translations is:

Answer Choices:

A. $2,938

B. $3,573

C. $3,240

Explanation

Under the current rate method, all balance sheet accounts, with the exception of equity, are translated at the current rate. At the current rate of 150 under the current rate method, the amount is: (486,000 + 50,000) / 150 = $3,573.

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