The Canadian subsidiary of a U.S. company reported cost of goods sold of 50,000 C$, for the current year ended December 31. The beginning inventory was 15,000 C$, and the ending inventory was 10,000 C$. Spot rates for various dates are as follows: Date beginning inventory was acquired$1.08=1C$ Rate at beginning of the year$1.10=1C$ Weighted average rate for the year$1.12=1C$ Date ending inventory was acquired$1.13=1C$ Assuming the Canadian dollar is the functional currency of the Canadian subsidiary, the translated amount of cost of goods sold that should appear in the consolidated income statement is
A. $50,000.
B. $55,300.
C. $56,500.
D. $56,000.
Answer: D
Business
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