Question
Weller Inc is located in the US and uses the US$ as its functional currency. On 1 June 2018 it orders some materials from Stuff
Weller Inc is located in the US and uses the US$ as its functional currency.
On 1 June 2018 it orders some materials from Stuff Ltd in the UK for £800,000.
The materials are delivered to Weller Inc on 1 July 2018 and it pays for the goods on 10 August 2018.
| Exhange rates are US$1 = | £ |
| 01 June 2018 | 0.83 |
| 01 July 2018 | 0.80 |
| 10 August 2018 | 0.76 |
Calculate the value of the exchange loss that will appear in the financial accounts of Weller Inc.
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
14th Canadian edition
134613112, 134835018, 9780134885254 , 978-0134613116
