The Canadian subsidiary of a U.S.company reported cost of goods sold of 50,000 C$,for the current year ended December 31.The beginning inventory was 15,000 C$,and the ending inventory was 10,000 C$.Spot rates for various dates are as follows:

Assuming the U.S.dollar is the functional currency of the Canadian subsidiary,the remeasured amount of cost of goods sold that should appear in the consolidated income statement is
A) $50,000
B) $55,300
C) $56,000
D) $56,500

Question

The Canadian subsidiary of a U.S.company reported cost of goods sold of 50,000 C$,for the current year ended December 31.The beginning inventory was 15,000 C$,and the ending inventory was 10,000 C$.Spot rates for various dates are as follows:

Assuming the U.S.dollar is the functional currency of the Canadian subsidiary,the remeasured amount of cost of goods sold that should appear in the consolidated income statement is
A) $50,000 
B) $55,300 
C) $56,000 
D) $56,500

Quizplus · Accepted Answer

The Answer of The Canadian subsidiary of a U.S.company reported cost of goods sold of 50,000 C$,for the current year ended December 31.The beginning inventory was 15,000 C$,and the ending inventory was 10,000 C$.Spot rates for various dates are as follows:

Assuming the U.S.dollar is the functional currency of the Canadian subsidiary,the remeasured amount of cost of goods sold that should appear in the consolidated income statement is
A) $50,000 
B) $55,300 
C) $56,000 
D) $56,500

The Canadian Subsidiary of a U