The Following Information Pertains to Questions

question 3

Multiple Choice

The following information pertains to questions
On July 1,2014,when the spot rate was US$1=CDN$1.1445,North Inc,based in the Alberta,ordered merchandise from an American supplier for US$600,000.Delivery was scheduled for the month of September,with payment to be made in full by December31,2014.
Once the order was placed,North entered into a forward contract with its bank to purchase US$600,000 in December at the forward rate of $1.1625CDN.The merchandise was received on October 1,2014,when the spot rate was US$1=$1.1575CDN.On October 31,the company's year-end,the spot rate was $1.1690.North purchased the U.S.dollars to pay its supplier on November 15,2014 when the spot rate was $1.1725CDN.
-At what amount would North record its Inventory when received from its supplier?

• A)$686,700
• B)$697,500
• C)$694,500
• D)$703,500

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Definitions:

Circumcision

A surgical procedure involving the removal of the foreskin from the male genitalia, often performed for religious, cultural, or medical reasons.

Resilient

Capable of quickly recovering from setbacks or stress.

Circumcision

is a surgical procedure that involves the removal of the foreskin from the male genitalia, often performed for religious, cultural, or medical reasons.

Resilient

The ability to recover quickly from difficulties; toughness or the capacity to bounce back from adverse events.