Question #82
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 46
Status: Unattempted
Part of Context Group: Q82-83
First in Group
Shared Context
Question
The value of December 31, 20X6, inventory reported in USD is:
Answer Choices:
A. $55,000,000
B. $51,700,000
C. $49,500,000
Explanation
Because the operations are independent from the parent, the current rate method will be
used. Inventory should be accounted for at the current rate. The value is 0.50 ×
110,000,000 = $55,000,000.