A Subsidiary of Dunder Inc

question 78

Multiple Choice

A subsidiary of Dunder Inc., a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the Stickle (§) which is the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2020, for §160,000 that was sold on January 17, 2021 for §207,000. The subsidiary paid for the inventory on January 31, 2021. Currency exchange rates between the dollar and the Stickle were as follows: What amount would have been reported for cost of goods sold on Dunder's consolidated income statement at December 31, 2021?

• A) $33,600.
• B) $35,200.
• C) $38,400.
• D) $40,000.
• E) $43,200.

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Definitions:

Excavate

To remove earth carefully and systematically from an archaeological site to uncover past artifacts or structures.

Pellicle

A flexible outer covering consisting of protein; characteristic of certain protists (e.g., ciliates and euglenoids).

Coralline

Referring to a type of algae that secretes calcium carbonate, contributing to the building of coral reefs.

Coral Reefs

Underwater ecosystems characterized by reef-building corals, which are colonies of tiny living animals found in marine waters containing few nutrients.