A U.S. company's foreign subsidiary had the following amounts in stickles (§) , the functional currency, in 2021: 
The average exchange rate during 2021 was §1 = $0.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $0.90. The exchange rate at December 31, 2021 was §1 = $0.84. Assuming that the foreign nation for the subsidiary had a highly inflationary economy, at what amount should that foreign subsidiary's purchases have been reflected in the 2021 U.S. dollar income statement?
A) $11,865,600.
B) $11,577,600.
C) $11,520,000.
D) $11,613,600.
E) $11,523,600.
Correct Answer:
Verified
Q30: Under the temporal method, common stock would
Q31: Which method of translating a foreign subsidiary's
Q32: Under the current rate method, property, plant
Q33: Under the temporal method, retained earnings would
Q34: Under the current rate method, depreciation expense
Q36: Under the temporal method, inventory at net
Q37: Under the temporal method, depreciation expense would
Q38: An historical exchange rate for common stock
Q39: A net liability balance sheet exposure exists
Q40: A U.S. company's foreign subsidiary had the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents