FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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McCarthy, Inc.’s Brazilian subsidiary borrowed 100,000 euros on January 1, 2017. Exchange rates between the Brazilian real (BRL) and euro (€) and between the U.S. dollar ($) and BRL are as follows:
| BRL (per euro€) | US $ Per BRL | |
| January 1, 2017 | BRL 4.2 | $0.28 |
| Average, 2017 | BRL 4.3 | $0.25 |
| December 31, 2017 | BRL 4.6 | $0.20 |
At what amount should the Brazilian subsidiary’s euro note payable be reported on McCarthy’s December 31, 2017, consolidated
a. $84,000.
b. $86,000.
c. $92,000.
d. $128,800.
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