The Canadian Subsidiary of a U

question 74

Multiple Choice

The Canadian subsidiary of a U.S.company reported cost of goods sold of 50,000 C$,for the current year ended December 31.The beginning inventory was 15,000 C$,and the ending inventory was 10,000 C$.Spot rates for various dates are as follows:

Assuming the Canadian dollar is the functional currency of the Canadian subsidiary,the translated amount of cost of goods sold that should appear in the consolidated income statement is

• A) $50,000
• B) $55,300
• C) $56,000
• D) $56,500

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Definitions:

Charles Demuth

An American painter associated with the Precisionist movement, known for his detailed, geometric works depicting industrial and urban scenes.

Kinetic Sculptures

Artworks with parts that move, either by air, motor, or human interaction, creating visual or sound experiences.

Alexander Calder

An American sculptor known for inventing the mobile, a type of moving sculpture made with delicately balanced or suspended shapes that respond to touch or air currents.

Engineering

The application of scientific and mathematical principles towards the design, construction, and maintenance of structures, machines, and systems to solve problems and achieve practical goals.