1)

The common stock of the foreign subsidiary owned by Hug has a historic value of $335,000.A recent appraisal of the stock by an independent firm estimates its current value at 12/31/19 is $375,000.What amount should be used in the consolidated worksheet at 12/31/19?

Translation method Re-Measurement MethodA$335,000$375,000B$375,000$335,000C$335,000$335,000D$375,000$375,000

Question 1 options:

A)

B

B)

D

C)

C

D)

A

7)

South Company is a subsidiary of North Company and is located in Indonesia, where the currency is the Sweezie().Data on South's inventory and purchases are as follows:

Inventory, January 1, 201930,000 ()

Purchases during 201980,000 ()

Inventory, December 31, 201920,000 ()

The beginning inventory was acquired during the fourth quarter of 2018, and the ending inventory was acquired during the fourth quarter of 2019.Purchases were made evenly during 2019.Exchange rates were as follows:

Fourth quarter of 20181()= $0.319

January 1, 20191 ()= $0.318

Average during 20191 ()= $0.315

Fourth quarter of 20191 ()= $0.313

December 31, 20191 ()= $0.31

Based on the preceding information and assuming theU.S. dollar is the functional currency, what is the amount of South's costs of goods sold re-measured in U.S. dollars?

Question 7 options:

A)

$28,510

B)

$28,540

C)

$28,480

D)

$28,570

Question 8

South Company is a subsidiary of North Company and is located in Indonesia, where the currency is the Sweezie().Data on South's inventory and purchases are as follows:

Inventory, January 1, 201930,000 ()

Purchases during 201980,000 ()

Inventory, December 31, 201920,000 ()

The beginning inventory was acquired during the fourth quarter of 2018, and the ending inventory was acquired during the fourth quarter of 2019.Purchases were made evenly during 2019.Exchange rates were as follows:

Fourth quarter of 20181 ()= $0.319

January 1, 20191 ()= $0.318

Average during 20191 ()= $0.315

Fourth quarter of 20191 ()= $0.313

December 31, 20191 )= $0.31

Based on the preceding information, the translation of cost of goods sold for 2019, assuming that theIndonesian Sweezie()is the functional currencyis

Question 8 options:

A)

$28,350

B)

$28,480

C)

$28,470

D)

$28,540