A company has an account payable to a U.S. company, a supplier of inventory, in the amount

Question:

A company has an account payable to a U.S. company, a supplier of inventory, in the amount of US$150,000. The payable was incurred when the exchange rate was US$1 = Cdn$.75. At yearend, the rate is $.72.

Required:
1. What amount of inventory is recorded?
2. What amount of exchange gain or loss will the company report for the year?

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Intermediate Accounting Volume 2

ISBN: 9781260881240

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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Question Posted: Apr 10, 2023 06:07 AM

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A company has an account payable to a U.S. company, a supplier of inventory, in the amount

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1 The Canadian equivalent of the payable when it is first recorded is US 150000 x C...View the full answer

Intermediate Accounting Volume 2

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