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 2011:$\begin{array}{lrl}
\text { Jan. } 1 & £ .1=\$ 1.60 \
\text { June } 30 & £ .1=\$ 1.64 \
\text { Dec. } 31 & £ .1=\$ 1.61\
\text { Weighted average rate for the year }& £ .1=\$ 1.59\
\end{array}$
-Westmore reported sales of £1,500,000 during 2011.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 2011:$\begin{array}{lrl}
\text { Jan. }  1 & £ .1=\$ 1.60 \
\text { June }  30 & £ .1=\$ 1.64 \
\text { Dec. }  31 & £ .1=\$ 1.61\
\text { Weighted average rate for the year }& £ .1=\$ 1.59\
\end{array}$
-Westmore reported sales of £1,500,000 during 2011.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

The Answer of  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 2011:$\begin{array}{lrl}
\text { Jan. }  1 & £ .1=\$ 1.60 \
\text { June }  30 & £ .1=\$ 1.64 \
\text { Dec. }  31 & £ .1=\$ 1.61\
\text { Weighted average rate for the year }& £ .1=\$ 1.59\
\end{array}$
-Westmore reported sales of £1,500,000 during 2011.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.

Westmore, Ltd -Westmore Reported Sales of £1,500,000 During 2011