Carp Corp, a Canadian company, bought a machine from the United States for US$ 100,000 when the…

Carp Corp, a Canadian company, bought a machine from the United States for US$ 100,000 when the exchange rate was C$ 1.20. The liability for the machine was paid when the exchange rate was C$ 1.25. At what cost should the machine be recorded in the accounts, assuming (a) The one-transaction theory, (b) The two-transaction theory?

 

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