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Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220 Exercise 53
S. company's foreign subsidiary had these amounts in foreign currency units (FCU) in 2015:
The average exchange rate during 2015 was $0.80 = FCU 1. The beginning inventory was acquired when the exchange rate was $1.00 = FCU 1. Ending inventory was acquired when the exchange rate was $0.75 = FCU 1. The exchange rate at December 31, 2015, was $0.70 = FCU 1. Assuming that the foreign country is highly inflationary, at what amount should the foreign subsidiary's cost of goods sold be reflected in the U.S. dollar income statement
A) $7,815,000.
B) $8,040,000.
C) $8,065,000.
D) $8,090,000.
The average exchange rate during 2015 was $0.80 = FCU 1. The beginning inventory was acquired when the exchange rate was $1.00 = FCU 1. Ending inventory was acquired when the exchange rate was $0.75 = FCU 1. The exchange rate at December 31, 2015, was $0.70 = FCU 1. Assuming that the foreign country is highly inflationary, at what amount should the foreign subsidiary's cost of goods sold be reflected in the U.S. dollar income statement
A) $7,815,000.
B) $8,040,000.
C) $8,065,000.
D) $8,090,000.
Explanation
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The amount of cost of goods sold is dete...
Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
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