Question #81

Reading: Reading 10 Multinational Operations

PDF File: Reading 10 Multinational Operations.pdf

Page: 46

Status: Unattempted

Part of Context Group: Q81-83 First in Group
Shared Context
- The amount of 20X6 cost of goods sold in USD is: (Note: if needed, use $0.40 as the rate to convert 20X5 ending inventory) A) $300,000,000.00 B) $262,800,000.00 C) $270,000,000.00
Question
The value of December 31, 20X6, gross property, plant, and equipment reported in USD is:
Answer Choices:
A. $313,000,000
B. $400,000,000
C. $304,000,000
Explanation
Because the operations are independent from the parent, the current rate method will be used. Fixed assets should be accounted for at the current rate. The value is 0.5 × 800,000,000 = $400,000,000.
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