A Subsidiary of Dunder Inc

question 82

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 this inventory in Dunder's consolidated balance sheet at December 31, 2020?

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

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Definitions:

Social Learning

The process by which individuals learn behaviors, norms, and values by observing and imitating others, especially those considered to be role models.

Newborns

Infants in their first days and weeks of life, particularly the period immediately following birth.

Preference

The selection of one item, idea, or action over another based on subjective likes or dislikes.

Mother's Voice

The auditory recognition by infants and children of their mother’s voice, which is known for its comforting and bonding effects.