____ Pamex's 100%-owned Swiss subsidiary, Samex, had stockholders' equity of 900,000 euros on 1/1/06. For 2006, Samex reported net income of 300,000 euros. On 10/1/06, Samex declared and paid a cash dividend of 100,000 euros. The euro is the functional currency. Direct exchange rate information follows:
What is the effect of the 2006 exchange rate change?
A) $(90,000)
B) $(103,000)
C) $(105,000)
D) $(107,000)
E) None of the above.

Question

____ Pamex's 100%-owned Swiss subsidiary, Samex, had stockholders' equity of 900,000 euros on 1/1/06. For 2006, Samex reported net income of 300,000 euros. On 10/1/06, Samex declared and paid a cash dividend of 100,000 euros. The euro is the functional currency. Direct exchange rate information follows:
 What is the effect of the 2006 exchange rate change?
A) $(90,000) 
B) $(103,000) 
C) $(105,000) 
D) $(107,000) 
E) None of the above.

Quizplus · Accepted Answer

The Answer of ____ Pamex's 100%-owned Swiss subsidiary, Samex, had stockholders' equity of 900,000 euros on 1/1/06. For 2006, Samex reported net income of 300,000 euros. On 10/1/06, Samex declared and paid a cash dividend of 100,000 euros. The euro is the functional currency. Direct exchange rate information follows:
 What is the effect of the 2006 exchange rate change?
A) $(90,000) 
B) $(103,000) 
C) $(105,000) 
D) $(107,000) 
E) None of the above.

____ Pamex's 100%-Owned Swiss Subsidiary, Samex, Had Stockholders' Equity of 900,000