A U.S. company acquired a Malaysian subsidiary at the beginning of the year. At the...
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Accounting
A U.S. company acquired a Malaysian subsidiary at the beginning of the year. At the date of acquisition, the subsidiary reported plant assets of RM800,000. During the year, it acquired plant assets of RM300,000 and reported depreciation expense of RM100,000, of which RM40,000 related to plant assets acquired during the year. The U.S.$/RM exchange rate was $0.25 on the acquisition date, $0.22 when the new plant assets were acquired, $0.20 at the end of the year, and the average rate for the year was $0.23. What is the subsidiary's translated depreciation expense for the year?
A.
$23,800
B.
$20,000
C.
$23,000
D.
$25,000
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