QUESTION 14

1. On January 1, 2020, Canadian Music International (CMI), a manufacturer of high-end recording equipment based in Toronto, shipped US$120,000 worth of inventory to its main U.S. distributor in Chicago, with full payment of these goods due by February 28, 2020. CMI has a January 31 year end. A list of significant dates and exchange rates is shown below.

   Transaction Date: January 1, 2020	US $1 = CDN $1.141
   Year-End Date: January 31, 2020	US $1 = CDN $1.142
   Settlement Date: February 28, 2020	US $1 = CDN $1.145

   The invoice price billed by CMI was US$120,000. At what value would CMI record the initial sale to its American distributor?

   		CDN$137,400
   		US$120,000
   		CDN$120,000
   		CDN$136,920