Know Your Product Ltd is an Australian company with a functionalcurrency = A$. The company has entered into a number oftransactions denominated in US$ during the year ended 30 June 2017.The closing exchange rate is A$1.00 = US$0.77, determine thetranslated amount that will be included in financial statements foreach of the following balances. 1. Land at cost US$400 000 acquiredon 1 February 2017 when the exchange rate is A$1.00 = US$0.67. 2.Land revalued to US$600 000 on 30 June 2017 that had cost US$400000 on 1 February 2017 when the exchange rate is A$1.00 = US$0.67.3. Credit sale of US$80 000 on 12 March 2017 when the exchange rateis A$1.00 = US$0.69. Received cash from debtor of US$40 000 on 30June 2017. 4. Credit purchase of inventory of US$250 000 on 15 June2017 when the exchange rate is A$1.00 = US$0.62. The creditorremains unpaid at 30 June 2017. 5. A loan payable of US$800 000arranged on 1 January 2017 when the exchange rate is A$1.00 =US$0.60. On 30 June 2017, the outstanding interest on the loan isUS$20 000.
