The following information relates to questions 20 to 22
Aussie Ltd has a controlling interest in Pommie Plc. On 1 June 20X5 Pommie sold inventory to Aussie for 10 000 pounds. The inventory was originally acquired by Pommie on 18 May 20X5 for 7000 pounds. The entire amount of inventory was held by Aussie at 30 June 20X5. The Australian tax rate is 30% and the British tax rate is 35%.
Exchange rates are as follows:
-The credit to cost of goods sold to eliminate the intragroup sale (to the nearest whole dollar) is:
A) A$2 240
B) A$9 375
C) A$17 073
D) A$21 875
Correct Answer:
Verified
Q1: The following information relates to question
Q3: When translating into the functional currency monetary
Q7: Indicators pointing towards the local overseas currency
Q11: Post-acquisition date retained earnings that are denominated
Q11: The general rule for translating liabilities denominated
Q13: Monetary items are best described as:
A) plant
Q17: By applying the definition provided in IAS
Q18: When translating the revenue and expenses in
Q19: When translating into the functional currency foreign
Q20: When translating into the presentation currency the
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