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