1.

If the Indian subsidiary of a US firm has net exposed assets of Rp9,000,000 and the Indian rupee drops in value from Rp45.00/$ to Rp50.00/$, the US firm has a translation:

A. Loss of $25,000
B. Gain of $20,000
C. Loss of $20,000
D. Gain of $25,000
Answer» D. Gain of $25,000


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