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Unformatted text preview: Beginning net monetary liability position KM (3,000) x $.32 = $ ( 960) Increases in monetary assets: Sold inventory 5/1 15,000 x $.34 = 5,100 Sold land 6/1 5,000 x $.35 = 1,750 Decreases in monetary assets: Bought inventory 10/1 (12,000) x $.39 = (4,680) Bought land 11/1 (4,000) x $.40 = (1,600) Paid a dividend 12/1 (3,000 ) x $.41 = (1,230 ) Ending net monetary liability position KM(2,000 ) $(1,620) Ending net monetary liability position at current exchange rate KM(2,000 ) x $.42 = (840 ) Remeasurement gain $ (780 ) Note: The purchase of land on account did not result in a decrease in monetary assets, rather an increase in monetary liabilities. Payment on the note payable and collection of accounts receivable do not affect the net monetary liability position....
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This note was uploaded on 02/08/2012 for the course ACCOUNTING 559 taught by Professor Keating during the Spring '07 term at DeVry Addison.
- Spring '07