On September 30, 20X8, Wilfred Company sold inventory to Jackson Corporation, its Canadian subsidiary. The goods cost Wilfred $30,000 and were sold to Jackson for $40,000, payable in Canadian dollars. The goods are still on hand at the end of the year on December 31. The Canadian dollar (C$) is the functional currency of the Canadian subsidiary. The exchange rates follow:

-Based on the preceding information,at what dollar amount is the ending inventory shown in the trial balance of the consolidated worksheet?
A) $45,000
B) $50,000
C) $40,000
D) $35,000

Question

On September 30, 20X8, Wilfred Company sold inventory to Jackson Corporation, its Canadian subsidiary. The goods cost Wilfred $30,000 and were sold to Jackson for $40,000, payable in Canadian dollars. The goods are still on hand at the end of the year on December 31. The Canadian dollar (C$) is the functional currency of the Canadian subsidiary. The exchange rates follow:
 
-Based on the preceding information,at what dollar amount is the ending inventory shown in the trial balance of the consolidated worksheet?
A) $45,000 
B) $50,000 
C) $40,000 
D) $35,000

Quizplus · Accepted Answer

Ending inventory is shown at $45,000 in the trial balance of the consolidated worksheet.

On September 30, 20X8, Wilfred Company Sold Inventory to Jackson