A Danish subsidiary of a U.S. corporation recorded a building it purchased in 2010 for 100,000,000 krone, when the exchange rate was $0.132/krone. The current exchange rate is $0.163/krone. Under the temporal method, how should the translated amount of the restated asset be interpreted?
A. The S. parent would have to pay $16,300,000 to acquire the building today.
B. The S. parent would have had to pay $13,200,000 to acquire the building in 2010.
C. The building is worth $13,200,000 to the S. parent today.
D. none of the above
Answer:B
A Danish subsidiary of a U.S. corporation recorded a building it purchased in 2010 for 100,000,000 krone, when the exchange rate was $0.132/krone. The current exchange rate is $0.163/krone. Under the temporal method, how should the translated amount of the restated asset be interpreted?
A. The S. parent would have to pay $16,300,000 to acquire the building today. B. The S. parent would have had to pay $13,200,000 to acquire the building in 2010. C. The building is worth $13,200,000 to the S. parent today. D. none of the above