10- A subsidiarys functional currency is the U.S. dollar. The exchange rate used to convert depreciation expense for a building on the subsidiarys financial statements from its local currency unit to the U.S. dollar is the:

Select one:

a.Current rate

b.Historical rate

c.Average historical rate

d.Weighted average rate

11- Star Corporation of Britain is 100% owned subsidiary of Planet Corporation, a U.S. firm. Stars ending inventory was reported as 10,000 LCU. This inventory was acquired when the exchange rate was $0.58. The weighted average rate for the current year was $0.61, and the current exchange rate on the balance sheet date is $0.65

Inventory will be reported at the following amount on translated financial statements:

Select one:

a.$5,800

b.$6,100

c.$6,500

d.$10,000

12- Star Corporation of Britain is 100% owned subsidiary of Planet Corporation, a U.S. firm. Stars ending inventory was reported as 10,000 LCU. This inventory was acquired when the exchange rate was $0.58. The weighted average rate for the current year was $0.61, and the current exchange rate on the balance sheet date is $0.65

Inventory will be reported at the following amount on remeasured financial statements:

Select one:

a.$5,800

b.$6,100

c.$6,500

d.$10,000