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ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary.
-What is the amount of the gain or loss arising from translation?
A)A $750 Loss.
B)A $5,000 Loss.
C)A $3,750 Gain.
D)A $307 Loss.

Question

The following information pertains to questions 
ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below:  US1 Financial Results for 2014 were as follows:  Balance Sheet  For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary.
-What is the amount of the gain or loss arising from translation?
A)A $750 Loss. 
B)A $5,000 Loss. 
C)A $3,750 Gain. 
D)A $307 Loss.

Quizplus · Accepted Answer

The correct answer is a $750 Loss. This is the amount of the gain or loss arising from translation, as indicated by the choice.

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