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EXERCISE 1 3 - 1 Identifying the Exchange Rate LO 5 Accounts are listed below for a foreign subsidiary that maintains its books in its
EXERCISE
Identifying the Exchange Rate LO
Accounts are listed below for a foreign subsidiary that maintains its books in its local currency. The equity interest in the subsidiary was acquired in a purchase transaction. In
the space provided, indicate the exchange rate that would be used to translate the accounts into dollars assuming that the functional currency was identified a as the US dollar
and b as the foreign entity's local currency. Use the following letters to identify the exchange rate:
Hhistorical exchange rate
Ccurrent exchange rate
Aaverage exchange rate for the current period
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