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est Finance Corporation has an Italian subsidian ventory is €3,000. The purchases during the ye E1= $1.00. The average exchange rate is €1 = $1 What is the remeasured value of cost of goods s

est Finance Corporation has an Italian subsidian ventory is €3,000. The purchases during the ye E1= $1.00. The average exchange rate is €1 = $1 What is the remeasured value of cost of goods s

FINANCIAL ACCOUNTING
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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Best Finance Corporation has an Italian subsidiary (Keith Solutions). In the remeasurement of the income statement, the value of beginning inventory is €3,000. The purchases during the year amount to €21,800. The ending inventory is €4,800. The exchange rate in the beginning is €1 = $1.00. The average exchange rate is €1 = $1.25, and the exchange rate at the time of acquisition of the ending inventory is €1 = $1.30. What is the remeasured value of cost of goods sold in dollars? $27,280 O $24,010 O $25,000 O $28,000
Transcribed Image Text:Best Finance Corporation has an Italian subsidiary (Keith Solutions). In the remeasurement of the income statement, the value of beginning inventory is €3,000. The purchases during the year amount to €21,800. The ending inventory is €4,800. The exchange rate in the beginning is €1 = $1.00. The average exchange rate is €1 = $1.25, and the exchange rate at the time of acquisition of the ending inventory is €1 = $1.30. What is the remeasured value of cost of goods sold in dollars? $27,280 O $24,010 O $25,000 O $28,000
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