The British Subsidiary of a U

question 26

Multiple Choice

The British subsidiary of a U.S. company reported cost of goods sold of 75,000 pounds (sterling) for the current year ended December 31. The beginning inventory was 10,000 pounds, and the ending inventory was 15,000 pounds. Spot rates for various dates are as follows: Assuming the pound is the functional currency of the British subsidiary, the translated amount of cost of goods sold that should appear in the consolidated income statement is:

• A) $108,750.
• B) $112,500.
• C) $114,300.
• D) $125,700.

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Definitions:

Relationship Conflict

Disagreements and incompatibilities between individuals or groups, often involving personal issues, interests, or values rather than task or goals.

Constructive Debate

A constructive debate is a discussion aimed at finding solutions or improvements, characterized by respectful and productive dialogue.

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions as well as the emotions of others, facilitating interpersonal communication and empathy.

Constructive Conflict

A type of conflict that is healthy, cooperative, and aimed at improving mutual understanding and outcome through effective communication.