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:
Required information
Based on the preceding information, at what dollar amount is the ending inventory shown in the trial balance of the consolidated worksheet?
$45,000
$50,000
$40,000
$35,000
Required information
Based on the preceding information, what amount of unrealized intercompany gross profit is eliminated in preparing the consolidated financial statements for the year?
$0
$5,000
$10,000
$15,000
Required information
Based on the preceding information, at what amount is the inventory shown on the consolidated balance sheet for the year?
$45,000
$30,000
$40,000
$35,000
Please show your work. Thank you.