Reference no: EM132951616

Big Co. owns 80% of Little Co. common stock, acquired on 1/1/19. At the end of 2019, Little Co has the following partial trial balance:

Account Euros

Cash 10,000

Inventory 20,000

PPE 400,000

Accum. Dep 100,000

Accounts payable 5,000

Common Stock 100,000

Retained Earnings 200,000

Sales 300,000

Cost of goods sold 80,000

Depreciation expense 30,000

Other expenses 160,000

Exchange rates:

1/1/19: $1.10 per Euro

12/31/19: $1.30 per Euro

2019 average: $1.20 per Euro

• All of Little's PPE was owned by them on 1/1/19
• Beginning inventory was 10,000 Euros
• Ending inventory as acquired when the exchange rate was $1.25 per Euro.
• Purchases of 90,000 Euros were made evenly throughout the year.

Question 1: What exchange rate should be used to remeasure Cash?

Question 2: What exchange rate should be used to remeasure PPE?

Question 3: What exchange rate should be used to remeasure Sales?

Question 4: What would be the dollar value for cost of goods sold?