Zeppelin Ltd Ordered a Batch of Computers from the USA

question 2

Multiple Choice

Zeppelin Ltd ordered a batch of computers from the USA on 11 November 20X4 for a total price of US$800 000. Zeppelin Ltd’s reporting date is 31 December and its functional currency is A$. The computers were delivered on 23 December 20X4 and payment was made on 15 January 20X5. The risks and benefits of the ownership transfer to the purchaser on delivery. The computers formed part of Zeppelin’s inventory and was still on hand on 31 December 20X4.
$$\begin{array}{l}\text { The following exchange rates applied: }\\\begin{array} { l l l l } 11 \text { November 20X4 } & \text { US } \$ 1.00 & = \mathrm { A } \$ 1.25 \\23 \text { December 20X4 } & \text { US } \$ 1.00 & = \mathrm { A } \$ 1.30 \\31 \text { December 20X4 } & \text { US } \$ 1.00 & = \mathrm { A } \$ 1.35 \\\text { 15 January 20X5 } & \text { US } \$ 1.00 & = \mathrm { A } \$ 1.20\end{array}\end{array}$$
-At what amount would be purchase of the inventory be recognised?

• A)$615,385
• B)$1,040,000
• C)$1,000,000
• D)$1,080,000

---

Definitions:

Online Fraud

Any attempt to conduct fraudulent activities online.

Online Fraud

A type of scam that occurs over the internet, involving the theft of personal information or money.

Phishing

A cyber attack that uses disguised emails as a weapon to trick individuals into revealing personal information, such as passwords and credit card numbers.