A foreign subsidiary has provided the following information with respect to its year-end inventories:
Required:
a. Assuming that the foreign currency is the functional currency, determine the valuation of the inventory in U.S. dollars.
b. Same as Requirement a, but assume that the U.S. dollar is the functional currency.

Question

A foreign subsidiary has provided the following information with respect to its year-end inventories:
  Required:
a. Assuming that the foreign currency is the functional currency, determine the valuation of the inventory in U.S. dollars.
b. Same as Requirement a, but assume that the U.S. dollar is the functional currency.

Quizplus · Accepted Answer

The Answer of A foreign subsidiary has provided the following information with respect to its year-end inventories:
  Required:
a. Assuming that the foreign currency is the functional currency, determine the valuation of the inventory in U.S. dollars.
b. Same as Requirement a, but assume that the U.S. dollar is the functional currency.

A Foreign Subsidiary Has Provided the Following Information with Respect