A Subsidiary of Porter Inc -What Amount Would Have Been Reported for Cost of Goods

question 25

Multiple Choice

A subsidiary of Porter Inc., a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the stickle (§) , the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2010, for §120,000 that was sold on January 17, 2011 for §156,000. The subsidiary paid for the inventory on January 31, 2011. Currency exchange rates between the dollar and the stickle were as follows: $\begin{array}{ll}\text { November } 1,2010 & \$ .19=\S 1 \\\text { December } 31,2010 & \$ .20=\S 1 \\\text { January 1, 2011 } & \$ .22=\S 1 \\\text { January 31,2011 } & \$ .23=\S 1 \\\text { Average for } 2011 & \$ .24=\S 1\end{array}$
-What amount would have been reported for cost of goods sold on Porter's consolidated income statement at December 31, 2011?

• A) $24,000.
• B) $26,400.
• C) $22,800.
• D) $27,600.
• E) $28,800.

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Definitions:

Reinforcers

Any stimulus which strengthens or increases the probability of a specific response or behavior by providing a consequence an individual finds rewarding.

Syndrome Model

A conceptual approach that describes a syndrome as a set of symptoms occurring together consistently enough to constitute a recognizable condition.

Neuro-Biological Antecedents

Biological and neurological factors that precede and influence the development of certain behaviors or conditions.

Psychosocial Antecedents

Factors in an individual's psychological and social environment that precede and contribute to the development of behaviors or conditions.