$treet Co purchased goods from an overseas supplier on 30 November 20X6 for A$450 000. Street Co paid for the goods on 31 January 20X7. They were not sold to third parties until February 20X7.

Exchange rates were:
	A$ = $1
30 November 20X6	1.5
31 December 20X6	1.45
31 January 20X7	1.55

What is the exchange difference that should be reported in profit or loss for the year ended 31 December 20X6 and at what amount should the goods be included in inventory in the statement of financial position at that date?

Select one:

a.

Exchange difference $9 677 gain;

Inventory $290 323

b.

Exchange difference $9 677 gain;

Inventory $300 000

c.

Exchange difference $10 345 loss;

Inventory $300 000

d.

Exchange difference $10 345 loss;

Inventory $310 345

Answer rating: 100% (QA)

Exchange rate difference will be arrised when exchange rate on balance sheet date is different fro... View the full answer