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  3. 16. a u.s. company's foreign subsidiary had the fo

16. A U.S. company's foreign subsidiary had the following amounts in stickles (), the functional...

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Accounting

16. A U.S. company's foreign subsidiary had the following amounts in stickles (), the functional currency, in 2018:

Cost of goods sold

12,000,000

Ending inventory

600,000

Beginning inventory

240,000

The average exchange rate during 2018 was 1 = $.96. The beginning inventory was acquired when the exchange rate was 1 = $1.20. The ending inventory was acquired when the exchange rate was 1 = $.90. The exchange rate at December 31, 2018 was 1 = $.84. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2018 U.S. dollar income statement when the functional currency is stickles?

A. $11,520,000.

B. $14,400,000.

C. $10,800,000.

D. $10,080,000.

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