A USCompany's Foreign Subsidiary Had the Following Amounts in Stickles (§)

question 36

Multiple Choice

A U.S.company's foreign subsidiary had the following amounts in stickles (§) in 2018: The average exchange rate during 2018 was §1 = $.96.The beginning inventory was acquired when the exchange rate was §1 = $1.20.The ending inventory was acquired when the exchange rate was §1 = $.90.The exchange rate at December 31, 2018 was §1 = $.84.Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2018 U.S.dollar income statement?

• A) $11,253,600.
• B) $11,577,600.
• C) $11,649,600.
• D) $11,613,600.
• E) $11,523,600.

---

Definitions:

Local Monopoly

A market structure wherein a single firm dominates the market in a particular geographic area, often due to the absence of viable competitors.

Demand Graphs

Visual representations used to show the relationship between the price of a good and the quantity demanded over a certain period.

Weekend Demand

The level of consumer need or interest for products or services during the weekend period.

Price Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers based on their willingness to pay.