Westmore Ltd., is a British subsidiary of a U.S. company. Westmore's functional currency is the pound sterling (£). The following exchange rates were in effect during 2013: Westmore reported sales of £1,500,000 during 2013. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales?
A)$2,415,000.
B)$2,400,000.
C)$2,385,000.
D)$943,396.
E)$931,677.

Question

Westmore Ltd., is a British subsidiary of a U.S. company. Westmore's functional currency is the pound sterling (£). The following exchange rates were in effect during 2013:  Westmore reported sales of £1,500,000 during 2013. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales?
A)$2,415,000. 
B)$2,400,000. 
C)$2,385,000. 
D)$943,396. 
E)$931,677.

Quizplus · Accepted Answer

£1,500,000 × $1.59 (Avg Rate) = $2,385,000