11) Under the U.S. method of translation procedures, if the financial statements of the foreign subsidiary of a U.S. company are maintained in the local currency, and the local currency is the functional currency, then A) the translation method to be used is not obvious. B) translation is accomplished through the temporal method. C) translation is not required. D) translation is accomplished through the current rate method. 12) Under the U.S. method of translation procedures, if the financial statements of the foreign subsidiary of a U.S.company are maintained in the local currency, and the U.S. dollar is the functional currency, then A) translation is not required. B) translation is accomplished through the current rate method. C) translation is accomplished through the temporal method. D) none of the above 13) If the European subsidiary of a U.S. firm has net exposed assets of 500,000, and the euro drops in value from $1.40/euro to $1.30/ the U.S. firm has a translation A) gain of $50,000 B) loss of $50,000 C) gain of $450,000 D) loss of 450,000 14) If the European subsidiary of a U.S. firm has net exposed assets of 500,000, and the euro increases in value from $1.30/ to $1.35/ the U.S. firm has a translation A) gain of $25,000 B) loss of $25,000 C) gain of S525,000 D) loss of 525,000 15) If the British subsidiary of a European firm has net exposed assets of 250,000, and the pound increases in value from 1.40/ to 1.45/, the European firm has a translation A) gain of 25,000 B) loss of 25,000 C) gain of 25,000 D) loss of 25,000 16) If the British subsidiary of a European firm has net exposed assets of 250,000, and the pound drops in value from 1.40/ to euro 1.30/, the European firm has a translation A) gain of 12,500 B) loss of 12,500 C) loss of 12,500 D) gain of 12,500