A wholly owned foreign subsidiary of Nick Inc. has certain expense accounts for the year ended December

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A wholly owned foreign subsidiary of Nick Inc. has certain expense accounts for the year ended December 31, 20X4, stated in local currency units (LCU) as follows:

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The exchange rates at various dates were as follows:

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What total dollar amount should be included in Nick’s income statement to reflect the preceding expenses for the year ended December 31, 20X4?

a. $160,000

b. $168,000

c. $176,000

d. $183,200 First assume that the foreign currency is the functional currency; then assume that the U.S. dollar is the functional currency.

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Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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