All of the Following Statements Are Stated in Brazil Reals

question 15

Multiple Choice

All of the following statements are stated in Brazil reals (R$) . Additional information:
Selected exchange rates:
$\begin{array}{|l|l|}\hline \text { June } 30,20 \times 4 & \mathrm{RS1}=\$ 0.5906 \\\hline \text { June } 30,20 \times 5 & \mathrm{RS1}=\$ 0.5623 \\\hline \text { Average for } 20 \times 5 & \mathrm{R} S 1=\$ 0.5744 \\\hline\end{array}$ Date of purchase of inventory on hand at year-end $\quad\quad\mathrm{R} \$ 1=\$ .05688$ Dividends were declared on June 30, 20X5 Opening inventory = R$130,000
Inventory purchases for the year = R$1,570,000
Machinery, land, and buildings were purchased on June 30, 20X4
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Bralta is the Brazilian subsidiary of Altapro Co., a Canadian company. Bralta had net assets at June 30, 20X4, of R$1,100,000. What is the cost of sales under the temporal method?

• A)$801,406
• B)$804,160
• C)$807,946
• D)$809,896

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Definitions:

Excise Tax

A tax levied on certain goods, services, and activities, such as tobacco, alcohol, and fuel, usually to discourage their consumption and raise government revenue.

Local Property Tax

A tax assessed on real estate properties, usually levied by local government entities such as cities or counties.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Progressive Tax

A tax whose burden, expressed as a percentage of income, increases as income increases.