Corporation A Plus is in the process of consolidating its subsidiaries located in Argentina. Since the two companies have different functional currencies, the balances of the accounts of the Argentinean company must be converted to dollars. Corporation A purchased inventory from the Argentinean subsidiaries in the current year. The merchandise was acquired for ARS 720,000 when the exchange rate was one dollar per 90 Argentinean pesos. At the end of the year, the exchange rate was one dollar per 110 Argentinean pesos. What should be recognized in the financial statement as a result of this conversion? A. A conversion gain of $1,455 reported within other comprehensive income. B. A conversion loss of $1,455 reported within other comprehensive income. C. A conversion loss of $1,455 reported within net income. D. A conversion gain of $1,455 reported within net income

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The detailed answer for the above question is provided below The correct answer is C A conversi... View the full answer