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Question 2 2 A Belgium subsidiary's beginning and ending trial balances appear below: D r ( C r ) January 1 December 3 1 Cash,
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A Belgium subsidiary's beginning and ending trial balances appear below: January December Cash, receivables Inventories Plant & equipment, net Liabilities Capital stock Retained earnings, beginning Sales revenue Cost of sales Outofpocket selling & administrative expenses Depreciation expense Total Exchange rates are: Beginning of year $ Average for year End of year The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and outofpocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for when the exchange rate was $ Depreciation for the year includes related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year. If the subsidiary's functional currency is the euro, what is its exposure to translation gains and losses as of the beginning of the year? Select one: A B C D
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A Belgium subsidiary's beginning and ending trial balances appear below: January December Cash, receivables Inventories Plant & equipment, net Liabilities Capital stock Retained earnings, beginning Sales revenue Cost of sales Outofpocket selling & administrative expenses Depreciation expense Total Exchange rates are: Beginning of year $ Average for year End of year The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and outofpocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for when the exchange rate was $ Depreciation for the year includes related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year. If the subsidiary's functional currency is the US dollar, what is its exposure to remeasurement gains and losses at the end of the year? Select one: A C D
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