7. Westmore Ltd. is a British subsidiary of a U.S. company. Westmore's functional currency is the pound sterling (). The following exchange rates were in effect during 2018: Jan.1 1 = $1.60 June 30 1 = $1.64 Dec.31 1 = $1.61 Weighted average rate for the year 1 = $1.59 Westmore reported sales of 1,500,000 during 2018. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales?

MULTIPLE CHOICE

a.$2,415,000

b.$2,400,000

c.$2,385,000

d.$943,396

e. $931,677

8. Under the temporal method, how would cost of goods sold be remeasured?

MULTIPLE CHOICE

a. Beginning of the year rate

b. Average rate

c. Current rate

d. A single historical rate

e. historical rates

12. Where is the remeasurement gain or loss reported in the parent company's financial statements?

MULTIPLE CHOICE

a. Net income/loss in the income statement

b. cumulative translation adjustment as a deferred asset

c. cumulative translation adjustment as a deferred liability

d. other comprehensive income

e. retained earnings

13. Where is the translation adjustment reported in the parent company's financial statements?

MULTIPE CHOICE

a. Net loss in the income statement

b. cumulative translation adjustment as a deferred asset

c. cumulative translation adjustment as a deferred liability

d. accumulated other comprehensive income

e. retained earnings