Question #83

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 46

Status: Unattempted

Part of Context Group: Q82-83
Shared Context
- The value of December 31, 20X6, gross property, plant, and equipment reported in USD is: A) $313,000,000. B) $400,000,000. C) $304,000,000.
Question
The value of all financing debt (notes payable, current portion of long-term debt, and long- term debt) on December 31, 20X6, reported in USD is:
Answer Choices:
A. $225,000,000
B. $171,000,000
C. $202,500,000
Explanation
Because the operations are independent from the parent, the current rate method will be used. All debt should be accounted for at the current rate. The value is 0.50 × 450,000,000 = $225,000,000.
Actions
Practice Flashcards