Suppose the English subsidiary of a U.S. firm had current assets of £1 million, fixed assets of £2 million and current liabilities of 1 million pounds both at the start and at the end of the year. There are no long?term liabilities. If the pound depreciated during that year from $to $the translation gain (loss) to be included in the parent company's equity account according to FASB #52 is
A) 0 since the current assets and current liabilities cancel
B) +$200,000
C) -$250,000
D) -$400,000

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The Answer of Suppose the English subsidiary of a U.S. firm had current assets of £1 million, fixed assets of £2 million and current liabilities of 1 million pounds both at the start and at the end of the year. There are no long?term liabilities. If the pound depreciated during that year from $to $the translation gain (loss) to be included in the parent company's equity account according to FASB #52 is
A) 0 since the current assets and current liabilities cancel
B) +$200,000
C) -$250,000
D) -$400,000

Suppose the English Subsidiary of a U