A US Company's Foreign Subsidiary Had the Following Amounts in Stickles

question 18

Multiple Choice

A U.S. company's foreign subsidiary had the following amounts in stickles (§) , the functional currency, in 2011:

The average exchange rate during 2011 was §1 = $.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $.90. The exchange rate at December 31, 2011 was §1 = $.84. Assuming that the foreign nation for the subsidiary had a highly inflationary economy, at what amount should that foreign subsidiary's purchases have been reflected in the 2011 U.S. dollar income statement?

• A) $11,865,600.
• B) $11,577,600.
• C) $11,520,000.
• D) $11,613,600.
• E) $11,523,600.

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Definitions:

American Personality Psychology

A branch of psychology that focuses on the study, assessment, and understanding of individual differences in personality within the cultural context of the United States.

Gordon Allport

A pioneering psychologist known for his contributions to personality theory and the psychology of prejudice.

Carl Rogers

An influential American psychologist known for his development of client-centered therapy and his contributions to humanistic psychology.

Humanistic Theory

A psychological perspective emphasizing individual potential for growth and the importance of self-actualization and psychological well-being.