22. A subsidiary of Reynolds Inc., a U.S. company, was located in a foreign country. The local currency of this subsidiary was the Euro () while the functional currency of this subsidiary was the U.S. dollar. The subsidiary acquired Equipment A on January 1, 2018, for 250,000. Depreciation expense associated with Equipment A was 25,000 per year. On January 1, 2020, the subsidiary acquired Equipment B for 150,000 and Equipment B had associated depreciation expense of 10,000. The subsidiary owned no other depreciable assets. Currency exchange rates between the U.S. dollar and the Euro were as follows:

January 1, 2018		1	=	$	1.20
December 31, 2018		1	=	$	1.14
2018 Average		1	=	$	1.18
January 1, 2019		1	=	$	1.15
December 31, 2019		1	=	$	1.21
2019 Average		1	=	$	1.18
January 1, 2020		1	=	$	1.26
December 31, 2020		1	=	$	1.30
2020 Average		1	=	$	1.28

What amount would have been reported for depreciation expense related to the equipment owned by the subsidiary in Reynoldss consolidated balance sheet at December 31, 2018?

Multiple Choice

• $29,500.

• $28,500.

• $30,000.

• $12,000.

• $11,800.