On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 468000 pesos when the exchange rate was MXN 10.5=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 29000. The year-end exchange rate was MXN 10.6 = C$1. The average rate during the year was MXN 11.6 = C$1. Translate the ending inventory to Canadian dollars assuming the Mexican affiliate's functional

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, the wholly- owned Mexican affiliate
of a Canadian percent company acquired an
inventory of computer hard drives for its assembly
operation.
The cost incurred was 468000 pesos when the
exchange rate was MXN 10.5=C$1. By year-end,
the Mexican affiliate had used three-fourths of the
acquired hard drives. Due to advance in hardware
technology, the remaining inventory was marked
down to its net realizable value of MXN 29000.
The year-end exchange rate was MXN 10.6 =
C$1. The average rate during the year was MXN
11.6 = C$1.
Translate the ending inventory to Canadian
dollars assuming the Mexican affiliate's functional
currency is the Mexican peso
Transcribed Image Text:On January 1, the wholly- owned Mexican affiliate of a Canadian percent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 468000 pesos when the exchange rate was MXN 10.5=C$1. By year-end, the Mexican affiliate had used three-fourths of the acquired hard drives. Due to advance in hardware technology, the remaining inventory was marked down to its net realizable value of MXN 29000. The year-end exchange rate was MXN 10.6 = C$1. The average rate during the year was MXN 11.6 = C$1. Translate the ending inventory to Canadian dollars assuming the Mexican affiliate's functional currency is the Mexican peso
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