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NEW QUESTION: 1
Gary Smith, CFA, has been hired lo analyze a specialty tool and machinery manufacturer, Whitmore Corporation (WMC). WMC is a leading producer of specialty machinery in the United States. At the end of
2006, WMC purchased York Tool Company (YTC), an Australian firm in a similar line of business. YTC has partially integrated its marketing functions within WMC but still maintains control of its operations and secures its own financing. Following is a summary of the income statement and balance sheet for YTC (in millions of Australian dollars - AUD) for the past three years as well as exchange rate data over the same period.

Smith has discovered that WMC has a small subsidiary in Ukraine. The Subsidiary follows IAS accounting rules and uses FIFO inventory accounting. The Ukrainian subsidiary was acquired ten years ago and has been fully integrated into WMC's operations. WMC obtains funding for the subsidiary whenever the company finds profitable investments within Ukraine or surrounding countries. According to forecasts from economists, the Ukrainian currency is expected to depreciate relative to the U.S. dollar over the next few years. Local currency prices are forecasted to remain stable, however.
One of the managers at WMC asks Smith to analyze a third subsidiary located in India. The manager has explained that real interest rates in India over the last three years have been 2.00%, 2.50%, and 3.00%, respectively, while nominal interest rates have been 34.64%, 29.15%, and 25.66%, respectively. Smith requests more time to analyze the Indian subsidiary.
Determine whether the translation method appropriate for consolidating the Ukrainian subsidiary's financial statements would allow WMC to recognize unrealized and realized gains in nonmonetary assets owned by the subsidiary.
A. WMC would only be able to recognize unrealized gains.
B. WMC would only be able to recognize realized gains.
C. WMC would be able to recognize unrealized and realized gains
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The appropriate translation method for the Ukrainian subsidiary is the temporal method since the functional currency is the U.S. dollar (the parent's currency). Under the temporal method, realized gains or losses on nonmonetary assets are recognized in operating profits through depreciation and cost of goods sold.
Unrealized gains or losses in nonmonetary assets are not recognized under the temporal method. (Study Session 6, LOS 23-c)

NEW QUESTION: 2
What is the VNX default failover policy for a Data Mover?
A. Verify
B. Auto
C. Retry
D. Manual
Answer: B

NEW QUESTION: 3
프로젝트 범위의 완료는 다음과 비교하여 측정됩니다.
A. 업무 성과 측정.
B. 프로젝트 범위 설명.
C. 요구 사항 문서화.
D. 프로젝트 관리 계획.
Answer: D