On September 30, 20X8, Wilfred Company Sold Inventory to Jackson

Multiple Choice

On September 30, 20X8, Wilfred Company sold inventory to Jackson Corporation, its Canadian subsidiary. The goods cost Wilfred $30,000 and were sold to Jackson for $40,000, payable in Canadian dollars. The goods are still on hand at the end of the year on December 31. The Canadian dollar (C$) is the functional currency of the Canadian subsidiary. The exchange rates follow: Based on the preceding information, at what amount is the inventory shown on the consolidated balance sheet for the year?

A) $45,000
B) $30,000
C) $40,000
D) $35,000