_____ at 12/31/06, When the Direct Spot Exchange Rate Was

Multiple Choice

_____ At 12/31/06, when the direct spot exchange rate was $.008, a foreign subsidiary reported the following analysis of its year-end inventory and exchange rates existing when the inventory was purchased:
The average exchange rate for 2006 was $.006. Under the current rate method, at what amount should the inventory be reported in U.S. dollars?

A) $300,000
B) $350,000
C) $360,000
D) $420,000
E) $480,000