Oscar, Ltd. is a British subsidiary of a U.S. company. Oscar's functional currency is the pound sterling (£). The following exchange rates were in effect during 2021: Oscar reported sales of £1,200,000 during 2021. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales?
A) $1,896,000.
B) $1,956,000.
C) $1,872,000.
D) $769,231.
E) $750,000.

Question

Oscar, Ltd. is a British subsidiary of a U.S. company. Oscar's functional currency is the pound sterling (£). The following exchange rates were in effect during 2021:  Oscar reported sales of £1,200,000 during 2021. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales?
A) $1,896,000. 
B) $1,956,000. 
C) $1,872,000. 
D) $769,231. 
E) $750,000.

Quizplus · Accepted Answer

The Answer of Oscar, Ltd. is a British subsidiary of a U.S. company. Oscar's functional currency is the pound sterling (£). The following exchange rates were in effect during 2021:  Oscar reported sales of £1,200,000 during 2021. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales?
A) $1,896,000. 
B) $1,956,000. 
C) $1,872,000. 
D) $769,231. 
E) $750,000.