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:

Vikings

Norse explorers, warriors, merchants, and pirates from Scandinavia who raided, traded, explored, and settled in wide areas of Europe from the late 8th to early 11th centuries.

Ottonian Plaques

Decorative metalwork from the Ottonian dynasty of the Holy Roman Empire, recognized for their craftsmanship and religious themes.

Magdeburg

A city in central Germany, historically significant for its role in the Holy Roman Empire and during various military conflicts.

Engraving on Metal

The process of cutting or carving designs into a metal surface, often for printing or decorative purposes.