A company has an account payable to a U$.$S$.$ company, a supplier of inventory, in the amount of US$$170,000.$ The payable was incurred when the exchange rate was US$$1=$ Cdn$$0\mathrm{.}79.$ At year$-$end, the rate is $$0\mathrm{.}75.$

Required:

$1.$ What amount of inventory is recorded?

$2.$ What amount of exchange gain or loss will the company report for the year?

Answer rating: 100% (QA)

To calculate the amount of inventory recorded and the exchange gain or loss we need to consider the ... View the full answer