Question #43

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 24

Status: Correct

Correct Answer: A

Part of Context Group: Q43-45 First in Group
Shared Context
- After remeasurement, depreciation will be closest to: A) $85. B) $77. C) $80.
Question
The value of common stock on the 2013 balance sheet should be closest to:
Answer Choices:
A. $1,000
B. $1,100
C. $1,050
Explanation
Common stock is translated using the historical rate under both the temporal method and the current rate method: 1300SF × 0.77$/SF = $1001.
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