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Unformatted text preview: appropriate. All assets (including inventory) are translated at the current exchange rate [100,000 x $.17]. 9. C Cost of goods sold is translated at the exchange rate in effect at the date of accounting recognition, which is the date the goods were sold [100,000 x $.18]. 10. D The foreign currency is the functional currency, so a translation is appropriate. All assets are translated at the current exchange rate of $.19. 11. C The U.S. dollar is the functional currency, so a remeasurement is appropriate. Inventory (carried at cost) is remeasured at the historical exchange rate of $.16. Marketable equity securities (carried at market value) are remeasured at the current exchange rate of $.19. 12. C Beginning inventory FCU 200,000 x $1.00 = $ 200,000 Purchases 10,300,000 x $0.80 = 8,240,000 Ending inventory (500,000 ) x $0.75 = (375,000 ) Cost of goods sold FCU 10,000,000 $8,065,000...
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- Spring '07