The Canadian Subsidiary of a U

Multiple Choice

The Canadian subsidiary of a U.S.company reported cost of goods sold of 50,000 C$,for the current year ended December 31.The beginning inventory was 15,000 C$,and the ending inventory was 10,000 C$.Spot rates for various dates are as follows:

Assuming the U.S.dollar is the functional currency of the Canadian subsidiary,the remeasured amount of cost of goods sold that should appear in the consolidated income statement is

A) $50,000
B) $55,300
C) $56,000
D) $56,500