Question
Demento Co. is an Italian subsidiary of a U.S. company. The following exchange rates were in effect during 2020: Date Spot Rate Jan. 1 $0.44
Demento Co. is an Italian subsidiary of a U.S. company. The following exchange rates were in effect during 2020:
| Date | Spot Rate |
| Jan. 1 | $0.44 |
| July 1 | $0.41 |
| Dec. 31 | $0.40 |
| Weighted average for year | $0.42 |
Demento acquired equipment worth 24,000 pesos (4-year life) on Jan. 1 and equipment worth 36,000 pesos (6-year life) on July 1. If the functional currency were the US dollar, what amount (rounded) would have been included for this subsidiary in calculating consolidated depreciation expense?
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The ASQ Auditing Handbook
Authors: J. P. Russell
3rd Edition
0873896661, 978-0873896665
