Problem ONE ( 3 points): What is the probable functional currency? Please fill in P or FC (as applicable) where: P= Parent's Currency; and FC= Foreign Currency. Financing is primanly from dollar-denominated obligations or parent company funds are needed to service the debt obligations. Volume of intercompany transactions is low, resulting in minimal relationship between the operations of the foreign entity and the parent. Selling prices are primarily determined by worldwide competition or international prices and respond to short-ferm changes in the exchange rates. Problem TWO (2 points): Please circle the best answer conceming the following: 1. In computing the net income of a partnership, expenses include operating expenses and a. partnen' loan interest and partners' salaries. b. partners' loan interest but not partners' salaries. c. partners' salaries but not partners' loan interest. d. no items related to partners. 2. In a partnership, mutual agency means that a. partners have unlimited liability for partnership debts. b. partners are co-ownens of partnership property. c. one partner is designated as ageat, to act for all partners. d. any partner may act on behalf of the partnenhip. Problem THREE (4 points): Place the appropriate letter (i.e., C for the Current Exchange Rate, H for Historical Exchange Rate, or A for the Average Exchange Rate) in the appropriate space below