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14) A is an Australian company with the Australian dollar as its functional currency. On 15...

14) A is an Australian company with the Australian dollar as its functional currency. On 15 October 2012, A contracted to purchase machinery with Indian rupees from a company located in India. The contracted price of the machinery was 120 000 rupees. The closing date for the entity is 31 December. The amount was not settled on the closing date. The amount was finally settled on 31 January 2013. The spot exchange rates for the three dates are:

15 October 2012: $1 = 30 rupees

31 December 2012: $1 = 31 rupees

31 January 2013: $1 = 32 rupees

What is the Australian dollar ‘cost’ of this asset on 31 January 2013? A) $3 750 B) $3 871 C) $4 000 D) $4 250

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Auhralian D l d dsst ση 31/01/2013 ollaY Cos SSe ol/20 s Cos | 2๐,๐๐๐ 乏32 Opion A

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