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
- The value of December 31, 20X6, gross property, plant, and equipment reported in USD is: A) $313,000,000. B) $400,000,000. C) $304,000,000.
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.
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