21. Certain balance sheet accounts of a foreign subsidiary of the Tulip Co. had been stated in U.S. dollars as follows:

	Stated at
	Current Rates					Historical Rates
Accounts receivablecurrent	$	280,000					$	308,000
Accounts receivablelong term		140,000						154,000
Prepaid insurance		70,000						77,000
Goodwill		112,000						119,000
Totals	$	602,000					$	658,000

If the subsidiary's local currency is its functional currency, what total amount should be included in Tulip's balance sheet in U.S. dollars?

A) $609,000.

B) $630,000.

C) $658,000.

D) $616,000.

E) $602,000.

22. A U.S. company's foreign subsidiary had the following amounts in stickles () in 2018:

Cost of goods sold		12,000,000
Ending inventory		600,000
Beginning inventory		240,000

-

The average exchange rate during 2018 was 1 = $.96. The beginning inventory was acquired when the exchange rate was 1 = $1.20. The ending inventory was acquired when the exchange rate was 1 = $.90. The exchange rate at December 31, 2018 was 1 = $.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2018 U.S. dollar income statement?

A) $11,613,600.

B) $11,577,600.

C) $11,649,600.

D) $11,253,600.

E) $11,523,600.