Question
Newberry, Inc., whose reporting currency is the U.S. dollar, has a subsidiary in Argentina, whose functional currency also is the U.S. dollar. The subsidiary acquires
Newberry, Inc., whose reporting currency is the U.S. dollar, has a subsidiary in Argentina, whose functional currency also is the U.S. dollar. The subsidiary acquires inventory on credit on November 1, 2020, for 160,000 pesos that is sold on January 17, 2021, for 190,000 pesos. The subsidiary pays for the inventory on January 31, 2021. Currency exchange rates are as follows:
| November 1, 2020 | $ | 0.24 | = | 1 | peso |
| December 31, 2020 | 0.25 | = | 1 | ||
| January 17, 2021 | 0.26 | = | 1 | ||
| January 31, 2021 | 0.27 | = | 1 | ||
What amount does Newberrys consolidated balance sheet report for this inventory at December 31, 2020?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
