The U.S. dollar has been steadily strengthening with respect to the Singapore dollar. A U.S. parent has

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Question:

The U.S. dollar has been steadily strengthening with respect to the Singapore dollar. A U.S. parent has a Singapore subsidiary. Which statement is most likely to be true concerning the subsidiary's operating profit (excluding remeasurement gain or loss) as a percentage of average assets?

(Use T to represent translated leverage, R to represent remeasured leverage, and L to represent leverage calculated using local currency balances.)

A. R > T > L

B. R > L > T

C. R > T = L

D. L = T > R