REFERENCE: Ref.10_05 a Subsidiary of Porter Inc. ,A U.S.company,was Located in a in a Foreign

question 18

Multiple Choice

REFERENCE: Ref.10_05
A subsidiary of Porter Inc. ,a U.S.company,was located in a foreign country.The functional currency of this subsidiary was the stickle (§) .The subsidiary acquired inventory on credit on November 1,2008,for §120,000 that was sold on January 17,2009 for §156,000.The subsidiary paid for the inventory on January 31,2009.Currency exchange rates between the dollar and the stickle were as follows:

-Under the temporal method,depreciation expense would be restated at what rate?

• A)Beginning of the year rate.
• B)Average rate.
• C)Current rate.
• D)Historical rate.
• E)Composite amount.

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Definitions:

Monocular

Monocular pertains to or is affected by the use of one eye, often referring to vision or devices designed for use with one eye like a telescope.

Pictorial Depth

The aspect of art and visual perception that conveys a sense of three-dimensionality on a flat surface, using cues like perspective and shading.

Height In Plane

The measurement of an object's elevation or altitude in relation to a base level, typically in the context of aviation or topography.

Moon Illusion

The moon illusion is an optical illusion where the moon appears larger when it is close to the horizon than when it is higher in the sky, despite having the same actual size.