Assume the information below about a U.S. firm’s foreign subsidiary that the U.S. firm must consolidate. (FC stands for Foreign Currency.)

Financial Statements In Foreign Currency	FC
Income Statement For the Year Ending 12/31/Year 1
Sales	50
Expenses	-40
Net Income	10
Balance Sheet As of 12/31/Year 1
Assets (Cash)	25
Liabilities (Note Payable)	15
Retained Earnings (the only account in OE)	10
FC Adjustment (AOCI)

Average FX (foreign exchange) rate: $1.50/FC, used for Net Income and Retained Earnings.

End of period (spot or current) rate: $2.00/FC, used for all Assets and Liabilities.

What is the amount of AOCI?

Answer rating: 100% (QA)

To determine the amount of Accumulated Other Comprehensive Income AOCI we need to calculate the diff... View the full answer