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

Question 143

Multiple Choice

_____ At 12/31/06, when the direct spot exchange rate was $.005, a foreign subsidiary reported the following analysis of its year-end inventory and exchange rates existing when the inventory was purchased:
_____ At 12/31/06, when the direct spot exchange rate was $.005, a foreign subsidiary reported the following analysis of its year-end inventory and exchange rates existing when the inventory was purchased: If the functional currency is the U.S. dollar, at what amount should the inventory be reported in U.S. dollars? A) $20,000 B) $25,000 C) $27,500 D) $28,000 E) $30,000 If the functional currency is the U.S. dollar, at what amount should the inventory be reported in U.S. dollars?


A) $20,000
B) $25,000
C) $27,500
D) $28,000
E) $30,000

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