The British Subsidiary of a U

question 44

Multiple Choice

The British subsidiary of a U.S.company reported cost of goods sold of 75,000 pounds (sterling) for the current year ended December 31.The beginning inventory was 10,000 pounds,and the ending inventory was 15,000 pounds.Spot rates for various dates are as follows:
Assuming the pound is the functional currency of the British subsidiary,the translated amount of cost of goods sold that should appear in the consolidated income statement is:

• A)$108,750.
• B)$112,500.
• C)$114,300.
• D)$125,700.

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Definitions:

British Victory

Refers to key achievements or successes won by the United Kingdom in various historical conflicts and wars, demonstrating military or diplomatic dominance.

French

Pertaining to France or its people, language, or culture.

Indian Reaction

The response or backlash from Indian communities or the nation of India to specific events, policies, or interventions.

Bourbon Reforms

A series of 18th-century administrative and economic measures implemented by the Spanish Crown to improve the efficiency and profitability of its colonies.