The British Subsidiary of a U

question 38

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 dollar is the functional currency of the British subsidiary,the remeasured amount of cost of goods sold that should appear in the consolidated income statement is:

• A)$108,750.
• B)$112,500.
• C)$114,250.
• D)$125,700.

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Definitions:

Maple Syrup Urine Disease

A rare genetic disorder characterized by the inability to break down certain amino acids, leading to a distinctive sweet odor in urine.

Intraventricular Hemorrhage

Bleeding within the brain's ventricular system, often occurring in premature infants, leading to various neurological complications.

Mortality And Morbidity

Statistical measures of the health outcomes in a population, where mortality refers to death rates and morbidity to the incidence of disease.

Premature Infants

Babies born before completing the usual 37 weeks of gestation, often requiring specialized care due to underdeveloped organs.