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If a Canadian subsidiary has Current Value Assets (CVA) of C$25,000,000 and Current Value Liabilities...

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Accounting

If a Canadian subsidiary has Current Value Assets (CVA) of C$25,000,000 and Current Value Liabilities (CVL) of C$50,000,000 and the exchange rate changed from USDCAD C$1.25/$ (historic rate) to C$1.16/$ (current rate) between accounting periods, what is the Foreign Currency Gain or Loss when a US-based parent wishes to consolidate the foreign subsidiary using the temporal method? (Round all calculations to 4 decimals)

A. -$1,552,500

B. -$4,750,000

C. $2,250,000

D.-$2,375,000

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