The British subsidiary of a U.S. company

29. 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 dollar is the functional currency of the British subsidiary, the remeasured amount of cost of goods sold that should appear in the consolidated income statement is:
A. $108,750.
B. $112,500.
C. $114,250.
D. $125,700.

 

30. 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.

 

31. Elan’s Investment in Swiss subsidiary account at December 31, 2008, is:
A. $1,881,050.
B. $1,916,050.
C. $1,923,950.
D. $2,051,500.

32. Elan’s consolidated workpaper eliminations related to the foreign currency translation adjustment will include which entry?

A. Option A
B. Option B
C. Option C
D. Option D

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