Placo Ltd., a Scottish subsidiary of Limko, Inc., a US company Cost of goods sold on its income statement for the year ended 12/31/2010.

Inventory 1/1/10. £100,000

Shopping. 900,000

Cost of goods available for sale. 1,000,000

Inventory 12/31/10. 200,000

COGS. £800,000

Exchange rates/£:

31/12/10. $0.522

31/12/09. $0.560

Average 2010 $0.547

What amount should be used to consolidate Placo's cost of goods sold to Limko's income statement under the current rate method? ( provide work on how you solved it)