$1,200,000$1,900,000$700,000 ($500,000 January 1, 2020)$400,000CashAccounts ReceivableInventoryPlant and Equipment (net)$4.200.000$400,000$2,000,000$1,000,000$800.000$4.200.000Current LiabilitiesBonds PayableCommon SharesRetained EarningsSales, purchases, bond interest, and other expenses occurred evenly throughout the year.US1 is considered to be a foreign subsidiary that has the same functional currency as ABC Inc.'s functional currency.Which of the following rates would be used to translate the company's sales?Select one:OA US$1 = CONS0.815OB. US$1= CDNSO.825OC. US$1 = CDNSO.8175OD. USS1 $0.83 CDN ABC Inc. has a single wholly-owned American subsidiary called US1 based in Los Angeles, California, which was acquiredJanuary 1, 2020. US1 submitted its financial statements for 2020 to ABC. Selected exchange rates in effect throughout2020 are shown below:January 1, 2020:December 31, 2020:Average for 2020:Date of Purchase of Inventory onHand:US $1-CDN $0.815US $1CDN $0.8176CDN $0.825CDN $0.83US $1-US $1 =Date Dividends were declared:US $1 =CDN $0.8125US1 financial results for 2020 were as follows:US1 Financial Statementsat December 31, 2020(in U.S. dollars)Income Statement:Sales$5.000,000$3,500,000Cost of SalesDepreciation Expense

Sales refer to the concept when a business exchanges its goods and services with a customer in…

Answered: ent Liabilities s Payable mon Shares…

Business

Accounting

ent Liabilities s Payable mon Shares ined Earnings

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

$1,200,000
$1,900,000
$700,000 ($500,000 January 1, 2020)
$400,000
Cash
Accounts Receivable
Inventory
Plant and Equipment (net)
$4.200.000
$400,000
$2,000,000
$1,000,000
$800.000
$4.200.000
Current Liabilities
Bonds Payable
Common Shares
Retained Earnings
Sales, purchases, bond interest, and other expenses occurred evenly throughout the year.
US1 is considered to be a foreign subsidiary that has the same functional currency as ABC Inc.'s functional currency.
Which of the following rates would be used to translate the company's sales?
Select one:
OA US$1 = CONS0.815
OB. US$1= CDNSO.825
OC. US$1 = CDNSO.8175
OD. USS1 $0.83 CDN

ABC Inc. has a single wholly-owned American subsidiary called US1 based in Los Angeles, California, which was acquired
January 1, 2020. US1 submitted its financial statements for 2020 to ABC. Selected exchange rates in effect throughout
2020 are shown below:
January 1, 2020:
December 31, 2020:
Average for 2020:
Date of Purchase of Inventory on
Hand:
US $1-
CDN $0.815
US $1
CDN $0.8176
CDN $0.825
CDN $0.83
US $1-
US $1 =
Date Dividends were declared:
US $1 =
CDN $0.8125
US1 financial results for 2020 were as follows:
US1 Financial Statements
at December 31, 2020
(in U.S. dollars)
Income Statement:
Sales
$5.000,000
$3,500,000
Cost of Sales
Depreciation Expense

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