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Quadros Incorporated, a Portuguese firm was acquired by a U.S. company on January 1, 2023. Selected account balances are available for the year ended December

Quadros Incorporated, a Portuguese firm was acquired by a U.S. company on January 1, 2023. Selected account balances are available for the year ended December 31, 2024, and are stated in Euro, the local currency.

Sales 400,000
Inventory (bought on February 1, 2024) 20,000
Equipment (bought on January 1, 2023) 90,000
Dividends (paid on September 1, 2024) 20,000
Accumulated depreciationEquipment 12/31/24 45,000
Depreciation expenseEquipment, 2024 9,000

Relevant exchange rates for 1 Euro are given below:

January 1, 2023 $ 0.91
January 1, 2024 0.93
February 1, 2024 0.94
September 1, 2024 0.97
December 31, 2024 1.01
4th quarter average, 2023 0.90
4th quarter average, 2024 0.98
Average, 2024 0.95

Assume the functional currency is the Euro; compute the U.S. income statement amount for depreciation expense for 2024.

Multiple Choice

$8,190

$8,370

$8,820

$9,090

$8,550

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