A parent Company in Kuwait that uses the KD has a foreign Subsidiary in Saudi...
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Accounting
A parent Company in Kuwait that uses the KD has a foreign Subsidiary in Saudi Arabia that uses the Saudi Riyal its functional currency. The Subsidiary on 31/12/2019 had Merchandise Inventory that had a cost of Saudi Riyal 30,000 and a current market price of Saudi Riyal 26,000. It was reported in the statement of financial position using the lower of Cost or Market. The merchandise inventory was purchased on 1/10/2019
I KD= 15 Saudi Riyal on 1/10/2019
I KD= 18 Saudi Riyal on 31/12/2019
Weighted average exchange rate for 2019 is I KD= 12 Saudi Riyal
What is the translated figure for merchandise Inventory in Kuwaiti Dinars? (round to the nearest one)
Select one:
a. KD 1,444
b. KD 1,428
c. None of the answers is correct
d. KD 2,000
e. KD 2,600
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