Quadros Inc., a Portuguese firm was acquired by a U.S. company on January 1, 2012. Selected account balances are available for the year ended December 31, 2013, and are stated in Euro, the local currency. Assume the functional currency is the U.S. Dollar; compute the U.S. income statement amount for sales for 2013.

Question

Quadros Inc., a Portuguese firm was acquired by a U.S. company on January 1, 2012. Selected account balances are available for the year ended December 31, 2013, and are stated in Euro, the local currency.  Assume the functional currency is the U.S. Dollar; compute the U.S. income statement amount for sales for 2013.

Quizplus · Accepted Answer

€400,000 × $.95 = $380,000