Problembom company had inventory in britain valued at, Ask an Expert

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Problem:

Bom Company had inventory in Britain valued at 240,000 pounds one year ago. The exchange rate for dollars to pounds was 1£ = 2 U.S. dollars. This year the exchange rate is 1£ = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 pounds.

Required:

Question: What is the gain or loss in inventory value in U.S. dollars as a result of the change in exchange rates?

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169694

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