Carp Corp bought inventory from the United Kingdom when the pound was worth C$ 1.80. When the year-end SFP was prepared, the pound was worth C$ 1.70. If the account payable for the inventory was unpaid at year-end, and the amount of the purchase was £ 5,000, how should the liability is reported on the SFP? How should the change in the value of the pound be reported (if at all)?
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