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Q24 Meadows Limited, a foreign subsidiary of U.S. based Meadows Inc. operates primarily for the...

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Accounting

Q24 Meadows Limited, a foreign subsidiary of U.S. based Meadows Inc. operates primarily for the benefit of its parent company. When the exchange rate was $1.30 per one British Pound Sterling (), Meadows Limited purchased Inventory for 2,100 pounds. Meadows resells one-third of the inventory for 900 when the exchange rate was $1.26 per Pound Sterling and another one-third for 900 when the exchange rate was $1.28 per Pound Sterling. The parent company applies the temporal method in its process of consolidating the financial results of its subsidiaries with its own financial results. Meadows Inc. reports gross profit associated with its subsidiary in the amount of:

Multiple Choice

  • $526

  • $508

  • $576

  • $466

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