Royal Tea, a wholly-owned English subsidiary of U.S. Beverages

Question # 00001878 Posted By: expert-mustang Updated on: 10/04/2013 07:33 AM Due on: 10/04/2013
Subject Accounting Topic Accounting Tutorials:
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Royal Tea, a wholly-owned English subsidiary of U.S. Beverages (a U.S. firm) maintains its inventory at cost, and Royal Tea’s books are reflected in British pound sterling. U.S. Beverages' functional currency is U.S. dollars.

•Determine the inventory value using both the temporal and current methods. Show how this will be reflected on Royal Tea's statements and the consolidated statements of U.S. Beverages. Use the following information for this calculation:
?The historical cost of inventory is £750,000.
?The historical exchange rate is $0.650.
?The current exchange rate is $0.689.

Additional Requirements

Min Pages: 1
Max Pages: 2
Level of Detail: Show all work
Other Requirements: SHOW ALL THE WORK... The inventory is correctly shown on Royal Tea's statements. The inventory is correctly shown on U.S. Beverages' statements under the current method.
The inventory is correctly shown on U.S. Beverages' statements under the temporal method.

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  1. Tutorial # 00001717 Posted By: expert-mustang Posted on: 10/04/2013 07:34 AM
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