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:

The exchange rates at various dates were as follows:

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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LCU Depreciation of Equipment (related assets were purchased January 1, 20x2) Provision for Uncollectible Accounts 120,000 80,000 Rent 200,000