Ventaz Corp.purchased assets for its overseas branch for $10,000.The rate of conversion at the time of purchase of asset was $1.306 / Euro.What is the value of assets after two years if the rate is $1.508 / Euro and the average rate being $1.407 / Euro?
A) 7,657 Euros
B) 5,080 Euros
C) 4,070 Euros
D) 3,780 Euros

Question

Quizplus · Accepted Answer

The initial purchase was $10,000 at a rate of $1.306/Euro, which equals 7,657 Euros. The value in Euros remains the same regardless of the change in conversion rate over time.