If the European subsidiary of a U.S. firm has net exposed assets of €750,000, and the euro drops in value from $1.30/euro to $1.20/€ the U.S. firm has a translation:

A) gain of $75,000.
B) loss of $75,000.
C) gain of $625,000.
D) loss of €576,923.

Answer: B

Business

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The Accounts Receivable account of Rosewood, Inc. has the following postings:

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