Question
5/ ABC Co., a U.S. firm, formed a German company in 2014 by purchasing the common stock of the newly formed D Inc. The functional
5/
ABC Co., a U.S. firm, formed a German company in 2014 by purchasing the common stock of the newly formed D Inc. The functional currency of D is the euro. During their first three years, D experienced the following activity in retained earnings.2014 Net loss 100,000 euros, 2015 Net income 200,000 euros, January 1, 2016 Dividend 50,000 euros and 2016 Net income 75,000 euros. The relevant exchange rates, December 31, 2013 1 euro = $0.20, December 31, 2014 1 euro = $0.22, 2014 average 1 euro = $0.215, January 1, 2016 1 euro = $0.245, average 2015 1 euro = $0.25, December 31, 2016 I euro=$0.26 and average 2016 1euro = $0.25.the translated amount of dividend declared in 2016 is:
a.
$ 12,250.
b.
$ 12,500.
c.
$ 13,000.
d.
$ 10,750
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