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Assume That Ariel Agrees to Purchase US$500,000 for C$550,000 on January

question 35

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Assume that Ariel agrees to purchase US$500,000 for C$550,000 on January 15,2013.The exchange rate at year end is US$1=C$0.95 and the January 15,2017 exchange rate is US$1=C$0.97.What journal entry is required when the contract is initiated?


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