On October 15,20X1,Planet Company Sold Inventory to Stars Corporation,its Mexican

question 55

Multiple Choice

On October 15,20X1,Planet Company sold inventory to Stars Corporation,its Mexican subsidiary.The goods cost Planet $2,700 and were sold to Stars for $3,500,payable in Mexican pesos.The goods are still on hand at the end of the year on December 31.The Mexican peso is the functional currency of Stars.The exchange rates follow:

-Based on the preceding information,at what dollar amount is the ending inventory shown in the subsidiary's trial balance column of the consolidation worksheet?

• A)$3,250
• B)$3,500
• C)$3,750
• D)$4,000

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Definitions:

SADC

Southern African Development Community, a regional organization aimed at economic integration and development in Southern Africa.

Southeast Asia

A geographic region located to the south of China and to the east of India, known for its diverse cultures, languages, and economies.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing environmental conservation, social equity, and economic growth.

Global Corporations

Global corporations are large companies that operate and provide products or services in multiple countries around the world, often having a significant influence on the global economy.