Suppose Stackpool Inc

question 28

Multiple Choice

Suppose Stackpool Inc.had inventory in Britain valued at 240,000 pounds one year ago.The exchange rate for dollars to pounds was 1£ = 2 U.S.dollars.This year the exchange rate is 1£ = 1.82 U.S.dollars.The inventory in Britain is still valued at 240,000 pounds.What is the gain or loss in inventory value in U.S.dollars as a result of the change in exchange rates?

• A) −$240,000
• B) −$43,200
• C) $0
• D) $43,200
• E) $47,473

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Definitions:

Old Age

A stage of life usually associated with retirement, slowing physical and mental faculties, and changes in social roles, typically considered to start at 65 years old.

Superego

In psychoanalytic theory, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Guilty Feelings

Relates to emotions of remorse or regret typically associated with the belief of having done something wrong.

Demonstrative

Refers to clearly showing or proving something, often used to describe expressive behavior or actions that effectively communicate feelings or intentions.