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A U.S. firm has total assets valued at €708,000 located in Germany. This valuation did not...

A U.S. firm has total assets valued at €708,000 located in Germany. This valuation did not change from last year. Last year, the exchange rate was €.9422/$. Today, the exchange rate is €.8929/$. By what amount did these assets change in value on the firm's U.S. financial statements?

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Answer #1

Last Year total Assets (in US $) = € 708,000 € 0.9422 per $

Last Year total Assets (in US $) = $ 751,432.82

Current Year total Assets (in US $) = € 708,000 € 0.8929 per $

Current Year total Assets (in US $) = $ 792,921.94

Change in Total Assets for US Financial statements = Current Year Total Assets (in $) - Last Year Total Assets (in $)

Change in Total Assets for US Financial statements = $792,921.94 - $751,432.82

Change in Total Assets for US Financial statements = $41,489.12

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