A subsidiary of Porter Inc., a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the Stickle (§) which is the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2017, for §120,000 that was sold on January 17, 2018 for §156,000. The subsidiary paid for the inventory on January 31, 2018. Currency exchange rates between the dollar and the Stickle were as follows: November 1, 2017$0.19=§1December 31, 2017$0.20=§1January 1, 2018$0.22=§1January 31, 2018$0.23=§1Average for 2018$0.24=§1?What amount would have been reported for cost of goods sold on Porter's consolidated income statement at December 31, 2018?

A. $24,000.
B. $26,400.
C. $28,800
D. $27,600.
E. $22,800.


Answer: C

Business

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