Question

A subsidiary of Porter Inc., a U.S. company, is located in France. The functional currency of this subsidiary is the dollar. The subsidiary acquired inventory on credit on November 1, 2020, for 200,000 Euro. The inventory was sold on January 17, 2021 for E250,000. The subsidiary paid for the inventory on January 31, 2021. Currency exchange rates between the dollar and the Euro were as follows:

November 1, 2019 E1=1.32
December 31, 2019 E1=1.30
January 17, 2020 E1= 1.21
October 1, 2018 E1=1.35
December 31, 2018 E1=1.15
The inventory balance for this inventory in Porter's consolidated balance sheet at December 31, 2019 was _________

Answer 1

$0

Step-by-step explanation:

According to the scenario, computation of the given data are as follows,

Date of acquire = November 1,2020

Inventory sold on date = January 17,2021

Payment for inventory = January 31,2021

So, inventory balance for the given inventory in Porter's consolidated balance sheet on December 31,2019 was $0, because there was no transaction done on or before December 31,2019.