The Following Information Pertains to Questions

question 35

Multiple Choice

The following information pertains to questions
ABC Inc has a single wholly-owned American subsidiary called US1 based in Los Angeles,California which was acquired January 1,2014.US1 submitted its financial statements for 2014 to ABC.Selected exchange rates in effect throughout 2014 are shown below: US1 Financial Results for 2014 were as follows: Balance Sheet For questions 17 through 22,inclusively,assume that US1 is considered to be a self-sustaining subsidiary.
-For the sake of simplicity,assume once again that US1's cost of sales was calculated to be $4,000,000 CDN.What is the amount (in Canadian dollars) of US1's net income?

• A)$414,000
• B)$422,500
• C)$421,000
• D)$440,250

---

Definitions:

Bilateral Pneumonia

An infection affecting both lungs, often caused by bacteria, viruses, or fungi, leading to inflammation and difficulty breathing.

Grimacing

The act of making a facial expression, often in response to pain or discomfort, characterized by a contorted look that typically signifies displeasure.

Incisional Pain

Pain that occurs at the site of a surgical incision, typically as part of the post-operative healing process.

Cue

A signal or prompt that triggers an action or response.