Suppose 1 Year Ago Hein Company Had Inventory in Britain

question 28

Multiple Choice

Suppose 1 year ago Hein Company had inventory in Britain valued at 240,000 pounds.The exchange rate for dollars to pounds was £1 = 2 Canadian dollars.This year,the exchange rate is £1 = 1.82 Canadian dollars.The inventory in Britain is still valued at 240,000 pounds.What is the gain or loss in inventory value in Canadian dollars as a result of the change in exchange rates?

• A)-$240,000
• B)-$43,200
• C)$0
• D)$43,200