The Canadian Subsidiary of a U

question 22

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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