Maypole Pty Ltd is an Australian company which has a functional currency of Australian dollars.Appleflower Pty Ltd is a US company which is a wholly owned subsidiary of Maypole.Its functional currency is US dollars.To comply with AASB 121,Maypole must translate the financial statements of Appleflower into Australian dollars to report in the consolidated groups financial statements.
Appleflower has land which it acquired on 17 October 20X0 for US$ 500 000.The relevant exchange rates are as follows:

\begin{array}{llr} \text { Spot rate at date of acquisition } & \text {AUS \( 1= \) US \( \$ 0.80 \)}\\ \text { Spot rate at 30 june \( 20 \times 1 \) } &\text { AUS \( 1= \) US \( \$ 0.85 \)}\\\text { Average rate for the } 20 \times 1 \text { financialyear }&\text { AUS \( 1= \) US\$ 0.82}\end{array}

The amount which should be recorded in the Maypole consolidated group for the land for the 20X1 financial year (assuming no fair value adjustments have occurred).is:
A) AU$ 425 000
B) AU$ 410 000
C) AU$ 400 000
D) AU$ 500 000

When Translating the Assets and Liabilities from Functional Currency to Presentation

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