Last year, your firm purchased a warehouse in Germany at a cost of 1.6 million. The value

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Question:

Last year, your firm purchased a warehouse in Germany at a cost of €1.6 million. The value of the warehouse has not changed. Suppose that last year, the exchange rate was €0.8549 per $1 and the spot rate today is €.0.7538. What is the amount of the change in the value of the warehouse on the U.S. financial statements of your firm?

Select one:

a. $251,015

b. $268,417

c. $161,760

d. $172,909