_____ 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 foreign currency, 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

Question

_____ 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 foreign currency, 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

Quizplus · Accepted Answer

The Answer of _____ 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 foreign currency, 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

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