A USCompany's Foreign Subsidiary Had the Following Amounts in Stickles (§)In

question 71

Multiple Choice

A U.S.company's foreign subsidiary had the following amounts in stickles (§) in 2011: $\begin{array} { l r } \text { Cost of goods sold } & \$ 12,000,000 \\\text { Ending inventory } & 600,000 \\\text { Beginning inventory } & 240,000\end{array}$ 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 country had a highly inflationary economy,at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2011 U.S.dollar income statement?

• A)$11,253,600.
• B)$11,577,600.
• C)$11,649,600.
• D)$11,613,600.
• E)$11,523,600.

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